Visteon Announces Offer to Acquire Korean Affiliate HCC


Published:

VAN BUREN TOWNSHIP — Visteon Corporation, 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 (32.0 million shares) of HCC for KRW 913 billion (USD 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 will offer KRW 28,500 per share, representing a premium of approximately 15 percent to HCC's share trading price on the Korean exchange on July 4. The offer is being funded through a fully committed local financing facility of KRW 1 trillion. 

Visteon also announced its intent to further invest in Korea to generate continued advanced technologies for radiators, condensers, evaporators and heater cores. Visteon 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 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 well-known 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.

"Visteon is committed to the long-term success of our climate business," said Don Stebbins, Visteon chairman, chief executive officer and president. "Full ownership of HCC is an important next step in ensuring our continued global competitiveness.

"This transaction will pave the way for HCC to play an even greater role in the global climate market while reinforcing its leadership position in Korea," Stebbins added. "It also will facilitate future investment in climate technology and fully leverage the companies' combined strengths and synergies in engineering, manufacturing, purchasing and finance."

Since obtaining majority ownership of HCC from Ford Motor Company in 1999, Visteon has supported HCC's approximately $1 billion investment to become a more competitive global supplier, building on HCC's strong reputation in Korea.

"World-class engineering is at the heart of Visteon and Halla success," Stebbins said. "We expect to hire additional engineering talent in the future, in Korea and other key markets, to drive innovation and to help our customers address new technology, environmental and regulatory trends."

As the world's second largest automotive climate control systems supplier, Visteon and Halla Climate Control provide a wide range of products including heating, ventilation and air conditioning (HVAC) systems, compressors, fluid transport and powertrain cooling products.

The transaction has the unanimous support of Visteon's board of directors. Goldman Sachs and Rothschild are acting as financial advisors to Visteon.

Edit Module
Edit Module Edit Module
Edit ModuleShow Tags

Related Articles

20th Annual Kidney Walk Planned at Detroit Zoo

For the 20th year, the National Kidney Foundation of Michigan is asking the community to join more than 8,000 walkers and supporters May 15 for the annual Kidney Walk at the Detroit Zoo to fight kidney disease.

Annual Detroit Zoo Fundraiser to Return in June with Penguin Theme

The Detroit Zoological Society’s annual Sunset at the Zoo fundraiser will return in June with a penguin theme to celebrate the Detroit Zoo’s new Polk Penguin Conservation Center.

Dearborn Sausage Co. Adds New Chicken Products

Dearborn Sausage Company has developed five new fully-cooked, low-calorie chicken sausages for grilling outside or preparing inside, or using in other recipes.

Tom Gores, Dan Gilbert Plan to Bring Major League Soccer to Detroit

Detroit Pistons owner Tom Gores and Cleveland Cavaliers owner Dan Gilbert announced today they are partnering to bring a Major League Soccer club to downtown Detroit.

Beaumont Pediatric Rehabilitation Center Opens in Macomb Township

Beaumont Children's, part of the Beaumont Health system, has opened a children’s rehabilitation service center in Macomb Township.
Edit ModuleShow Tags

Most Popular

  1. Link Detroit Completes $21M Project Connecting Walking, Biking Paths
    The partners of Link Detroit have completed a collection of five projects connecting 20 miles of...
  2. Birmingham Nears 100% Occupancy as More Retailers Plan Openings
    Downtown Birmingham — which boasts a 97 percent business occupancy rate — is preparing for...
  3. Consumers Energy Tops Annual Goal Early, Invests $1B with Michigan Companies
    Consumers Energy today announced it has invested more than $1 billion in less than a year with...
  4. Long-Term Talent Supply May Threaten Demand for Most Jobs in Michigan
    Michigan’s top economic leaders today issued a series of findings that show the state is...
  5. Multi-room Escape Game Opens in Westland
    A live-action game in which participants have 45 minutes to escape a series of rooms by solving...
  6. National Kidney Foundation Expands Programs, Moves to Larger Office in Detroit
    Given the rising need for programs and services related to good kidney health, the National...