Adient revises sales price of its stake in Yafeng

China/United States
Published:  25 June, 2020
Credit: Adient

The U.S. headquartered manufacturer of automotive seating said on June 24 that it has entered into an amendment to its previously announced definitive agreement with Yanfeng Automotive Trim Systems to make certain changes to their existing joint venture relationships.

As previously reported by ILM, Adient announced on January 31 that it had agreed to sell its 30% ownership stake in Yanfeng Global Automotive Interior Systems to Yanfeng for US$379 million. In connection with obtaining certain required regulatory consents, Adient and Yanfeng have agreed to certain modifications to the transactions; the purchase price for the sale by Adient stake in YFAI is to be reduced to US$369 million, of which US$309 million will be paid at the closing of the agreed transactions and the remaining US$60 million to be paid on a deferred basis post-closing. The board of directors of each company are said to have approved the distribution of dividends to their respective shareholders on or prior to June 30, 2020.  Adient Asia Holdings is to receive 49.99% of the YFAS dividends and 50% of the AYM dividends.