VAN BUREN TOWNSHIP, Mich. – Visteon Corp., which currently holds a 70 percent ownership stake in Halla Climate Control Corp., said today that its Korean subsidiary, Visteon Korea Holdings Corp., has announced a tender offer to purchase the remaining 30 percent (32. million shares) of HCC for $805 million in cash. The offer is conditioned on shareholders tendering a minimum of 26.7 million shares, for a total Visteon ownership of at least 95 percent.
Visteon also announced its intent to further invest in Korea to generate continued advanced technologies for radiators, condensers, evaporators and heater cores. The company intends to invest $50 million to build a state-of-the-art wind tunnel and to expand its manufacturing footprint in Korea, including establishing the world’s largest variable swashplate compressor production capability.
The company says this transaction will strengthen Visteon’s climate business through a more efficient operating structure and demonstrates the company’s commitment to a long-term, global presence in the automotive climate control sector. HCC’s strength in developing advanced powertrain cooling technologies will support and complement Visteon’s strong research and development capabilities in the U.S. and Germany, leading to continued advanced products for customers and future growth.
Halla Climate Control will retain its brand name, and its highly respected Korean management team will remain in place and continue to fulfill its roles and responsibilities. The reporting structure of the organization will remain as it is today.
In addition, Visteon has terminated its MOU with Huayu Automotive Systems Co. Ltd. (HASCO) with respect to a potential transaction that would have combined the majority of Visteon’s global interiors business with Yanfeng Visteon Automotive Trim Systems Co. Ltd (YFV).
"In a thoughtful and productive way, both parties worked hard to move the agreement forward, but there were a number of items that kept us from doing so," said Don Stebbins, Visteon chairman, CEO and president. "Visteon will now seek alternative solutions to maximize value creation while maintaining a sharp focus on quality, technology development and innovation for our global customers, including Yanfeng Visteon. Creating value is our top priority."
