Shares of Adient PLC ADNT, +1.51% rose 1.9% in premarket trading Friday, after the automotive seating company said it was ending its Yangeng Adient Seating Co. (YFAS) joint venture in China, as it plans to drive its China strategy independently. As part of the deal to end the JV, Adient will sell its 49.99% stake in the JV to partner Yanfeng Automotive Trim Systems Ltd. for $1.5 billion in cash. In addition, Adient will acquire YFAS’s 50% equity interest in Chongqing Yanfeng Adient Automotive Components Co. Ltd. and YFAS’s 100% equity interest in Yanfeng Adient (Langfang) Seating Co. Ltd. After the interest in those companies are acquired, Adient said it will consider consolidating those businesses. “These pending transactions offer Adient an opportunity to drive our China strategy independently and further position the company for future growth in the world’s largest automotive market,” Adient Chief Executive Doug Del Grosso. “In addition, proceeds from the transactions will provide immediate value to Adient’s stakeholders.” Adient’s stock has rallied 14.3% over the past three months through Thursday, while the S&P 500 SPX, +1.04% has gained 7.5%.
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