U.S. auto parts supplier Visteon Corp. (VC) said Wednesday that its Korean subsidiary, Visteon Korea Holdings Corp., has announced a tender offer to buy the remaining 30% of Halla Climate Control Corp. that it does not already own for 913 billion Korean won, or US$805 million, in cash.
Visteon, which currently holds a 70% ownership stake in Halla, said it will offer 28,500 Korean won a piece for 32.0 million shares of Halla Climate Control. The offer price represents a premium of about 15% to Halla's stock price on the Korean exchange on July 4.
The offer is conditioned on Halla shareholders tendering a minimum of 26.7 million shares, for a total Visteon ownership of at least 95%.
Visteon said the deal will strengthen its climate business through a more efficient operating structure.
Halla, which makes automotive climate control products including air-conditioning systems, modules, compressors and heat exchangers, will retain its well-known brand name and its Korean management team.
Van Buren Township, Michigan-based Visteon had obtained majority ownership of the South Korean company from Ford Motor Co. (F) in 1999.
Earlier Wednesday, Visteon and Huayu Automotive Systems Co., Ltd. said that they have agreed to terminate the nonbinding memorandum of understanding with respect to a potential deal that would have combined the majority of Visteon's global interiors business with Yanfeng Visteon Automotive Trim Systems, Co. Ltd
Visteon shares closed Tuesday's regular trading session at $37.18, up 76 cents or 2.09%.
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