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Aptiv completes sale of Motional stake to Hyundai

EditorIsmeta Mujdragic
Published 05/16/2024, 09:38 AM

DUBLIN - Aptiv PLC (NYSE: NYSE:APTV), a prominent player in the global technology sector with a focus on advancing mobility, has finalized the sale of a significant portion of its stake in the autonomous driving joint venture Motional AD LLC to Hyundai Motor (OTC:HYMTF) Group. The completion of this transaction follows the restructuring plans previously announced by the companies.

Under the terms of the deal, Aptiv has reduced its common equity interest in Motional from 50% to 15%. The company sold an 11% common equity interest to Hyundai for a cash consideration of approximately $448 million. Additionally, Aptiv exchanged around 21% of its common equity in Motional for an equivalent number of preferred shares in the venture.

The restructuring of ownership stakes comes after Hyundai's earlier capital infusion into Motional this month. The transaction is a strategic move for Aptiv, as it adjusts its investment profile within the autonomous driving landscape.

Aptiv PLC is recognized for its development of innovative solutions that enhance the safety, environmental sustainability, and connectivity of transportation. The company's efforts contribute to a more sustainable future of mobility.

The information reported here is based on a press release statement from Aptiv PLC.

InvestingPro Insights

Aptiv PLC (NYSE: APTV) has recently undergone a notable change in its investment strategy, as seen in the sale of its stake in Motional AD LLC to Hyundai Motor Group. This move aligns with the company's financial and strategic positioning, which can be further understood through key metrics and insights from InvestingPro.

One of the standout InvestingPro Tips for Aptiv is the recent upward revision of earnings by 12 analysts for the upcoming period. This could signal a positive outlook on the company's future financial performance, especially in light of its restructuring efforts in the autonomous driving sector. Moreover, Aptiv is currently trading at a low earnings multiple, with an adjusted P/E ratio over the last twelve months as of Q1 2024 of just 6.75, suggesting that the stock might be undervalued relative to its earnings capacity.

On the financial front, InvestingPro Data reveals that Aptiv has a market capitalization of $22.24 billion USD, which is a testament to its significant presence in the technology and mobility sectors. Despite weak gross profit margins, as indicated by a gross profit margin of 17.76% in the last twelve months as of Q1 2024, the company has shown robust revenue growth of 11.06% over the same period. Additionally, Aptiv has demonstrated a strong return over the last month, with a one month price total return of 13.61%, reflecting investor confidence in the company's recent moves.

For investors and analysts seeking a comprehensive view of Aptiv's financial health and market potential, additional InvestingPro Tips are available, including insights on the company's volatility, debt levels, and profitability. In total, there are 11 InvestingPro Tips listed for Aptiv, which can be accessed for a deeper analysis of the company's performance and outlook.

For those interested in a more detailed examination of Aptiv's financials and future prospects, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. The insights and data provided can be critical in making informed investment decisions in the dynamic landscape of technology and mobility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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