BorgWarner Inc.
BWA,
shares fell 1.9% in the aftermarket Tuesday after the auto-parts supplier said the spinoff of its fuels systems Phinia Inc. is on track for early July. BorgWarner announced the spinoff in December. “The intended separation supports advancing our electrification journey and optimizing our combustion portfolio and will best position BorgWarner for sustainable and profitable growth,” the company said in a letter to shareholders Tuesday. “As separate companies, both businesses will benefit from enhanced strategic focus and flexibility to pursue their differentiated market opportunities and deliver significant value to shareholders.” After the separation is complete, BorgWarner shareholders will receive one share of Phinia stock for each five shares of BorgWarner stock they hold, with shareholders effectively owning shares in both companies. The spinoff is expected to be effective July 3, and Phinia’s stock is expected to begin trading under the ticker symbol PHIN on July 5, the first trading day after the distribution date.
