Visteon Corp. said Tuesday it has completed the $3.6 billion
sale of its stake in Halla Visteon Climate Control Corp. and
unveiled an accelerated $500 million share buyback program.
Visteon announced plans in December to sell its 70% stake in the
company to an affiliate of South Korea-based private-equity firm
Hahn & Co. and Hankook Tire Co.
Shares of Visteon gained 2.4% in premarket trading to
$108.50.
The deal was part of Visteon's broader effort to focus on its
cockpit electronic ecosystems businesses and connected car
segment.
Visteon on Tuesday detailed its plans to return up to $2.75
billion to shareholders through buybacks and distributions over the
next year.
Due to U.S. tax rules, Visteon said it plans to limit buybacks
to $500 million this year, which it plans to carry out through an
accelerated repurchase program. The company also expects to make a
special distribution next year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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