Transaction leverages combined strengths of world's second
largest automotive climate supplier, demonstrates Visteon's
continued commitment to Korea
VAN BUREN TOWNSHIP, Mich.,
July 4, 2012 /PRNewswire/ --
- Integrated business will offer complete climate control
portfolio and be better positioned to create value for customers
and shareholders
- Investment by Visteon to expand research and development and
manufacturing footprint in Korea
- Halla Climate Control to retain well-known brand name and
Korean management team
Visteon Corporation (NYSE: VC), which currently holds a 70
percent ownership stake in Halla Climate Control Corp. (HCC, KS:
018880), 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.
(Logo:
http://photos.prnewswire.com/prnh/20001201/DEF008LOGO)
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.
Conference Call and Webcast Information
Visteon will host a conference call and live audio webcast for
the investment community at 10 a.m.
EDT on Thursday, July 5, to
discuss the tender offer. The dial-in numbers to participate in the
call are:
U.S./Canada: 888-452-7086
Outside U.S./Canada:
706-643-3752
The conference call and webcast will be accessible through
Visteon's website at www.visteon.com.
Those interested in hearing a replay of the conference call can
do so through the company's website or by calling 855-859-2056
(toll-free if dialing from the U.S. or Canada) or 404-537-3406 (international). To
access the replay by telephone, enter conference ID 98038736. The
replay will be available by telephone for one week following the
conference call.
Visteon is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, electronic, interior
and lighting products for vehicle manufacturers. With corporate
offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 27 countries and employs
approximately 25,000 people. Learn more
at www.visteon.com.
Halla Climate Control Corp. is a leading automotive components
company based in South Korea with
14 operations in North America,
Europe and Asia. The company develops and manufactures
automotive climate control products, including air-conditioning
systems, modules, compressors and heat exchangers. Founded in 1986,
the company has continuously achieved progress and growth,
resulting in newly created value, through persistent technology
development and innovation. Halla Climate Control employs
approximately 6,600 people.
SOURCE Visteon Corporation