Visteon to Sell Interest in Korea Venture for $3.6 Billion

By Tess Stynes 

Visteon Corp. agreed to sell its 70% interest in Halla Visteon Climate Control Corp. to an affiliate of South Korea-based private-equity firm Hahn & Co. and Hankook Tire Co. in a deal the automotive supplier valued at roughly $3.6 billion.

Visteon shares rose 6.7% to $102.05 in recent early trading.

The deal, expected to close in the first half of 2015, is part of Visteon's broader effort to focus on its cockpit electronic ecosystems businesses and connected car segment.

Visteon said the deal is valued at 52,000 Korean won ($47.52) a share.

In May, Visteon reached a deal to sell the majority of its global automotive-interiors business to an affiliate of Cerberus Capital Management LP.

Earlier this year, Visteon also acquired a part of Johnson Controls Inc.'s automotive electronics business, a move that aimed to improve Visteon's competitive position in the vehicle cockpit electronics sector.

"HVCC is Korea's largest and the world's second largest provider of thermal management solutions and will be an excellent fit within our existing portfolio and strategy," Hahn & Co. Chief Executive Scott Hahn said.

Visteon plans to provide more details about the deal, as well as the expansion of its electronics and connected car business, at an auto industry conference in Detroit on Jan. 13.

Write to Tess Stynes at [e-mail]

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