Hyundai Motor Company (KOSE:A005380) entered into an agreement to acquire an additional 11% stake in Motional Ad LLC from Aptiv PLC (NYSE:APTV) for approximately $450 million on April 19, 2024. As reported, the consideration will be paid in cash. In related transactions, Hyundai committed to invest $475 million in Motional in exchange for an additional 11.7% common equity interest, to occur no later than May 3, 2024.

Aptiv also agreed to exchange approximately 21% of its common equity in Motional for a like number of Motional preferred shares. Upon completion of these transactions, Aptiv anticipates having an approximate 15% common equity interest in Motional, reduced from current 50% stake. These transactions are subject to regulatory approvals and customary closing conditions and are expected to close by Q3 2024.

The transaction will result in full year pro forma EPS benefit of ~$0.90; assuming close by September 30, 2024, and EPS benefit of ~$0.30 for Aptiv PLC.