$1.5 Billion Deal Sends Adient Shares 19% Higher Friday Morning
Shares of Adient (NYSE: ADNT), a leading global producer of automotive seating, jumped as much as 19% higher Friday morning after the auto supplier announced it would be selling its 50% stake in the Yanfeng Adient Seating (YFAS) joint venture to its joint venture partner, Yanfeng.
Adient will sell its 50% stake in YFAS to Yanfeng for $1.5 billion in cash. On the flip side, Adient will acquire YFAS' 50% stake in Chongqing Yanfeng Adient Automotive Components and also a 100% stake in YFAS' Yanfeng Adient (Langfang) Seating. Once the transaction is completed, which is expected to be in the second half of 2021, Adient will consolidate those businesses. The proceeds will be used for general corporate purposes and to prepay a portion of the company's debt.
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Source Fool.com
