Visteon may sell controlling stake in S Korea's Halla Visteon to Hahn & Co for $3.6 bn

25 Nov 2014

US automotive parts giant Visteon Corp, spun off from Ford Motor in 2000, has signed a preliminary agreement to sell its controlling stake in South Korea's Halla Visteon Climate Control Corp to local private equity firm Hahn & Co for $3.6 billion, Korean media yesterday reported.

Visteon, which has been weighing plans to sell it's nearly 70-per cent stake in Halla Visteon, which it has had since 2012, was yesterday valued at 3.55 trillion won based on the company's last closing price.

Halla Visteon was earlier a joint venture between Ford and Halla Group's subsidiary Mando Corp, from whom Visteon acquired the stake during the Asian financial crisis in the late 1990s.

Based in Daejeon, South Korea, Halla Visteon manufactures automobile climate control products in Korea, Europe, China, and the US.

Halla Visteon, whose clients include Ford and Hyundai / Kia Motors among others, makes heating, ventilation, and air-conditioning products for vehicles, radiators, blowers, compressors, clutches, and front end modules.

The company has a market cap of 4.4 trillion and posted net profit of $266.7 million last year on revenues of $3.3 billion.