Visteon to sell stake in Chinese JV for $1.25B

[August 14, 2013]  (AP) -- Visteon is selling its stake in a Chinese joint venture for $1.25 billion.

The auto parts supplier says it will apply proceeds from the sale of its 50 percent stake in Yanfeng Visteon Automotive Trim Systems on a $1.2 billion share buyback program that runs through December 2015. Visteon is selling its stake in Yangfeng to Huayu Automotive Systems Co. Ltd.

Visteon Corp. says it expects to receive about $1.1 billion of the cash proceeds before Dec. 31.

The Van Buren Township, Mich., company also will pay about $70 million to gain control of the majority of Yanfeng Visteon Automotive Electronics Co. Ltd. from Huayu.

Visteon earned $65 million in the second quarter on $1.89 billion in revenue.

[Associated Press]

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