Market Overview

Visteon Surges 5% On $3.6 Billion HVCC Sale

Share:

Shares of Visteon Corp (NYSE: VC) surged 5 percent Wednesday following an announcement that it will sell its approximately 70 percent ownership interest in Halla Visteon Climate Control Corp. (HVCC) for approximately $3.6 billion.

The buyer is an affiliate of Hahn & Company – a South Korea-based private equity company – and Hankook Tire Co. Ltd.

According to the press release, the transaction represents an enterprise value for HVCC of approximately 10.1 times EBITDA for the 12 months ended Sept. 30, 2014.

Visteon expected the ultimate tax exposure, after consideration of Visteon's tax attributes, to range between 10 percent and 14 percent as a function of final resolution of sovereign tax issues. The majority of proceeds have been hedged against currency movement.

Scott Hahn, CEO of Hahn & Co, said, "HVCC is Korea's largest and the world's second largest provider of thermal management solutions and will be an excellent fit within our existing portfolio and strategy. Customers of HVCC will continue to benefit from its globally renowned technology solutions, highly respected management team, strong balance sheet, dedication to innovation and expanding global market presence."

Visteon recently traded at $100.95. up 5.5 percent.

Posted-In: Hahn & Company Hankook Tire CoM&A News

 

Related Articles (VC)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Morgan Stanley Raises 3M Price Target, But Stills Sees Downside

Morning Market Losers