Veoneer has signed agreements to sell its 51% ownership in the Japanese (VNBJ) and Chinese (VNBZ) entities, which comprise Veoneer Nissin Brake Systems (VNBS) to its joint venture partner Nissin-Kogyo and Honda.
On completion of the transactions through the Definitive Agreements, the VNBS joint venture will be terminated.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This is the next step in the review of Veoneer’s brake systems business first announced in early 2019. On June 17, 2019, Veoneer announced it had signed a binding agreement to acquire Nissin Kogyo’s interests in the US operations of VNBS. The transaction closed on June 28, 2019, after which Veoneer owns 100% of such US operations.
The termination of the VNBS joint venture and the divestiture of the Japanese and Chinese entities are part of Veoneer’s previously announced market adjustment initiatives, which are aimed at focusing Veoneer on its core businesses and providing an effective cost structure to address the current market and business situation in the company.
The purchase price is around US$176m. In connection with the transactions, Veoneer will be repaid an outstanding loan of around US$20m and receive a special dividend of approximately US$5m for a total cash impact of around US$200m.
The divestiture is structured as two separate transactions, subject to the satisfaction or waiver of customary closing conditions, including approvals necessary through Japanese, (for VNBJ) and Chinese, (for VNBZ) competition laws.
This information is information Veoneer is obliged to make public pursuant to the EU Market Abuse Regulation.
