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Transportation equipment industry

Ford to Distribute Visteon Stock to Shareholders as Part of Spin-Off

Strategic Insights

— 2 min read

As part of its continued efforts to restructure and reorganize its business, Ford Motor Company announced today that it will distribute approximately 0.130933 shares of Visteon Corporation for every share of Ford common or Class B stock held on June 12. This move represents Ford's 100 percent stake in Visteon, with the distribution ratio calculated by dividing the number of Visteon shares owned by Ford (130 million) by the number of Ford common and Class B shares outstanding on the record date of June 12 (992,872,120). The distribution will be made on June 28, with Ford employees who invest in Ford stock through certain U.S. employee savings plans receiving a cash distribution in lieu of Visteon stock. The total value distributed to Ford shareholders is expected to be approximately $2.8 billion, with the actual value determined by the value of Visteon stock on the distribution date.

Key Takeaways:

  • Ford Motor Company will distribute 0.130933 shares of Visteon Corporation for every share of Ford common or Class B stock held on June 12.
  • The distribution represents Ford's 100 percent stake in Visteon.
  • The distribution ratio was calculated by dividing the number of Visteon shares owned by Ford (130 million) by the number of Ford common and Class B shares outstanding on the record date of June 12 (992,872,120).
  • The distribution will be made on June 28, with a cash distribution in lieu of Visteon stock for Ford employees who invest in Ford stock through certain U.S. employee savings plans.
  • The total value distributed to Ford shareholders is expected to be approximately $2.8 billion, with the actual value determined by the value of Visteon stock on the distribution date.
  • The distribution is separate from Ford Motor Company's previously announced Value Enhancement Plan (VEP), which will also generate a shareholder distribution this year.
  • Visteon Corporation is one of the world's largest suppliers of automotive systems and is recognized as a technology leader in electronics integration.
  • Visteon's 1999 sales were $19.4 billion, and it will rank among the top 100 companies on the Fortune 500 once it becomes an independent company.

Statistics:

  • Ford Motor Company will distribute 130 million shares of Visteon Corporation.
  • The record date for the distribution is June 12, 1999.
  • The distribution will be made on June 28, 1999.
  • The total value distributed to Ford shareholders is expected to be approximately $2.8 billion.
  • The distribution ratio is 0.130933 shares of Visteon for every share of Ford common or Class B stock held on June 12.
  • Visteon's 1999 sales were $19.4 billion.

Sources:

  • Ford Motor Company press release, June 13, 1999 (PRNewswire).
  • Ford Motor Company announcement, May 31, 1999 (Ford Motor Company).

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