Source: Veoneer, Inc.
STOCKHOLM — 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 percent 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, the company 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 the company’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 percent 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, it 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. The company is listed on the New York Stock Exchange and on Nasdaq Stockholm.