Visteon Announces Tender Offer to Acquire Remaining Public Shares of Halla Climate Control Corp

Visteon Corporation, which currently holds a 70% ownership stake in Halla Climate Control Corp. (HCC), said 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%.

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.

Source: Visteon