Visteon Corp (NYSE:VC) shares rose 6.65% to $73.61 (+$4.59) after the auto parts supplier company said that they are selling its stake in a Chinese venture for $1.25 billion so that they can focus on climate control and electronics. This was the company’s biggest one-day increase since November 1st. Visteon’s stock increased 37% this year.
Visteon said that they will be selling half of an automotive interior venture to Huayu Automotive Systems and other interior assets for $1.25 billion. Visteon is going to pay $70 million to Huayu to gain a majority control of Yanfeng Visteon. The deals will likely be completed by June 2015.
Visteon will most likely use the proceeds to buy back stock until the end of 2015, said Visteon CEO Tim Leuliette.
Visteon spun out of Ford Motor Company in 2000. Huayu Automotive is a division of Shanghai Automotive Industry, the parent company of SAIC Motor. SAIC Motor is the largest automaker in China.
[Source: Detroit Free Press]