Visteon Corporation has declared a special cash distribution of US$43.40 per share to be paid out late in January. The board also authorised a share repurchase plan of up to $500m which will run until the end of 2016.
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"The [announcements] are consistent with the previously announced plan to return $2.5bn to $2.75bn of cash to shareholders," said the supplier's president and CEO Sachin Lawande. "After completing the capital return program, [we expect] to be well-capitalised and well-positioned for both organic growth and value-accretive acquisitions."
The special cash distribution and share repurchase program will be funded from proceeds from the sale last June of Visteon's 70% slice of the former Halla Visteon Climate Control (HVCC) to an affiliate of Hahn and Hankook Tire.
The special distribution is expected to be treated primarily as a return of capital for US federal income tax purposes. The company anticipates that less than $250m of the distribution will be classes as a dividend.