Veoneer, Inc. (NYSE: VNE) 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).