Adient announces strategic transformation in China
- Company enters into agreement with joint venture partner Yanfeng to end its YFAS joint venture
- Transactions provide Adient opportunity to independently drive its strategy in China
- After-tax proceeds of ~$1.4B, combined with existing cash on the balance sheet, are expected to drive significant debt paydown throughout 2021
$ADNT has entered into definitive agreements with joint venture partner Yanfeng Automotive Trim Systems Ltd. (YF) to end its Yanfeng Adient Seating Co., Ltd. (YFAS) joint venture in China.
Adient will receive ~$800 million in cash by closing of the transactions (including dividends) and ~$700 million in cash prior to calendar year end, even if closing occurs before such time.
Pro forma Adient
Compared to the company's FY21 outlook, once the transactions close, global consolidated sales and Adj.-EBITDA are expected to increase annually by between $700M-$800M and between $90M-$100M, respectively. In addition, Adient's equity income post-closing is expected to decline annually by ~$155M. Net income and EPS improvement is forecast post-closing, driven by the expected significant reduction in debt and the corresponding benefit of lower financing costs.
finance.yahoo.com/ne...china-115000439.html
- Company enters into agreement with joint venture partner Yanfeng to end its YFAS joint venture
- Transactions provide Adient opportunity to independently drive its strategy in China
- After-tax proceeds of ~$1.4B, combined with existing cash on the balance sheet, are expected to drive significant debt paydown throughout 2021
$ADNT has entered into definitive agreements with joint venture partner Yanfeng Automotive Trim Systems Ltd. (YF) to end its Yanfeng Adient Seating Co., Ltd. (YFAS) joint venture in China.
Adient will receive ~$800 million in cash by closing of the transactions (including dividends) and ~$700 million in cash prior to calendar year end, even if closing occurs before such time.
Pro forma Adient
Compared to the company's FY21 outlook, once the transactions close, global consolidated sales and Adj.-EBITDA are expected to increase annually by between $700M-$800M and between $90M-$100M, respectively. In addition, Adient's equity income post-closing is expected to decline annually by ~$155M. Net income and EPS improvement is forecast post-closing, driven by the expected significant reduction in debt and the corresponding benefit of lower financing costs.
finance.yahoo.com/ne...china-115000439.html