STOCKHOLM, Feb. 3, 2020 /PRNewswire/ -- Veoneer, Inc.
(NYSE: VNE) (SSE: VNE SDB), the world's largest pure-play
company focused on Advanced Driving Assistance Systems and
Automated Driving, has completed the sale of its 51% ownership in
the Japanese (VNBJ) and Chinese (VNBZ) entities that comprise
Veoneer Nissin Brake Systems (VNBS) to its joint venture partner
Nissin-Kogyo Co., Ltd. and Honda Motor Co., Ltd.
On October 30, 2019, the parties
first announced the execution of definitive agreements related to
the divestiture of VNBJ and VNBZ. The aggregate
purchase price is approximately $176
million. In connection with the closing of the transactions,
Veoneer is being repaid an outstanding intercompany loan of
approximately $20 million. In
January 2020, Veoneer received an
additional special dividend of approximately $5 million from the joint venture. The
divestiture of VNBJ and VNBZ was structured as two separate
transactions each of which was completed on February 3, 2020. The net effect on cash is
expected to be around $170
million.
This divestiture was the next step in the strategic review of
Veoneer's brake systems business first announced in early 2019. On
June 28, 2019, Veoneer acquired
Nissin Kogyo's interests in the US operations of VNBS and Veoneer
now owns 100% of such US operations (now named Veoneer Brake
Systems, or VBS).
Veoneer designs and manufactures products
and solutions for active safety, autonomous driving, occupant
protection and brake control. Our purpose is to create trust in
mobility. Founded in 2018, Veoneer builds on a heritage of close to
70 years of automotive safety development. Headquartered in
Stockholm, Sweden, Veoneer has
9,200 employees in 13 countries. In 2018, sales amounted to
$2.2 billion. Veoneer is listed on
the New York Stock Exchange and on Nasdaq Stockholm.
For more information please contact:
Thomas Jönsson, EVP Communications & IR, tel
+46(0)8-527-762-27
Ray Pekar, Investor Relations,
tel +1(248)794-4537
Safe Harbor Statement: This release
contains statements that are not historical facts but rather
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include those that address activities, events or
developments that Veoneer, Inc. or its management believes or
anticipates may occur in the future. All forward-looking statements
are based upon our current expectations, various assumptions and/or
data available from third parties. Our expectations and assumptions
are expressed in good faith and we believe there is a reasonable
basis for them. However, there can be no assurance that such
forward-looking statements will materialize or prove to be correct
as forward-looking statements are inherently subject to known and
unknown risks, uncertainties and other factors which may cause
actual future results, performance or achievements to differ
materially from the future results, performance or achievements
expressed in or implied by such forward-looking statements.
Numerous risks, uncertainties and other factors may cause actual
results to differ materially from those set out in the
forward-looking statements, including general economic conditions
and fluctuations in the global automotive market. For any
forward-looking statements contained in this or any other document,
we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995, and we assume no obligation to update publicly or
revise any forward-looking statements in light of new information
or future events, except as required by law.
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SOURCE Veoneer