VAN BUREN TOWNSHIP, Mich.,
Dec. 10, 2015 /PRNewswire/
-- Visteon Corporation (NYSE: VC) today announced that its
board of directors has declared a special cash distribution in the
amount of $43.40 per share. The
record date for the distribution is Jan. 15,
2016, and it will be payable on Jan.
22, 2016. In addition, the board authorized a share
repurchase program of up to $500
million through Dec. 31,
2016.
"The approximate $1.75 billion
distribution and $500 million share
repurchase program are consistent with the previously announced
plan to return $2.5 billion to $2.75
billion of cash to shareholders," said Visteon President and
CEO Sachin Lawande. "After
completing the capital return program, Visteon expects to be
well-capitalized and well-positioned for both organic growth and
value-accretive acquisitions."
As part of the capital return program, on June 16, 2015, Visteon entered into an
Accelerated Stock Buyback (ASB) with a third party to purchase
shares of its common stock for an initial payment of $500 million.
The special cash distribution and share repurchase program will
be funded from proceeds from the sale on June 9, 2015, of Visteon's approximately 70
percent ownership interest in the former Halla Visteon Climate
Control Corp. (HVCC) to an affiliate of Hahn & Company, and
Hankook Tire Co. Ltd.
Investors should note that the ex-dividend date is set by the
NYSE. Pursuant to NYSE rules pertaining to distributions that
exceed 25 percent of a company's share price, the expected
ex-dividend date will occur one business day following the payable
date of the distribution. Shareholders of record on the record
date, who sell their shares prior to the ex-dividend date, are not
entitled to the special cash distribution.
The special distribution is expected to be treated primarily as
a return of capital for U.S. federal income tax purposes. The
company anticipates that less than $250
million of the distribution will be characterized as a
dividend.
The U.S. federal income tax treatment of holding Visteon's
common stock to any particular stockholder will depend on the
stockholder's particular tax circumstances. Visteon's stockholders
are urged to consult their tax advisor regarding the U.S. federal,
state, local and foreign income and other tax consequences to them,
in light of their particular investment or tax circumstances, of
acquiring, holding and disposing of Visteon's common stock.
Shares may be repurchased from time to time in open market
transactions or in privately negotiated transactions depending on
market and economic conditions, share price, trading volume,
alternative uses of capital and other factors. Such purchases will
be made in accordance with applicable U.S. securities laws and
regulations.
About Visteon
Visteon is a global company that designs, engineers and
manufactures innovative cockpit electronics products and connected
car solutions for most of the world's major vehicle manufacturers.
Visteon is a leading provider of instrument clusters, head-up
displays, information displays, infotainment, connected audio, and
connectivity and telematics; its brands include Lightscape®,
OpenAir® and SmartCore™. Headquartered in Van Buren Township, Michigan, Visteon has
nearly 11,000 employees at 50 facilities in 19 countries. Visteon
had $3.1 billion in electronics sales
over the last 12 months. Learn more at www.visteon.com.
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SOURCE Visteon Corporation