Autoliv (NYSE:ALV) announces that its board finished a strategic review of the business.
A decision to spin off the electronics business segment was made by the board to add additional value to shareholders.
Autoliv says the key drivers for the separation included the different pace of technology advancement in the two businesses and different sales growth rates over the near and long-term with limited customer or operational synergies.
The spinoff will be effected by a payment of a dividend of the common stock of the new electronics company on a pro rata basis to the holders of common shares.
ALV +1.28% premarket to $129.39
Source: Press Release