U.S. auto parts supplier Visteon Corp (VC.N) said it would offer some 913 billion Korean won ($805 million) to take full control of South Korean car air conditioner maker Halla Climate Control Corp.
The offer price represents a premium of about 15% to Halla’s stock price on the Korean exchange on July 4.
Visteon currently holds a 70 percent ownership stake in HCC. The offer is conditioned on shareholders tendering a minimum of 26.7 million shares, for a total Visteon ownership of at least 95 percent.
Halla, which generates more than 60 percent of its revenue from Hyundai Motor Group, is an important asset for Visteon due to its strength in high-end air conditioning and heating systems, especially as electric cars tend to require more sophisticated climate control mechanisms.
Visteon also announced its intent to further invest in Korea to generate continued advanced technologies for radiators, condensers, evaporators and heater cores.
Goldman Sachs and Rothschild are advising Visteon.
Visteon shares closed Tuesday’s regular trading session at $37.18, up 76 cents or 2.09%.
With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK, Visteon has facilities in 27 countries and employs approximately 25,000 people.