Shares of Delphi Automotive (DLPH - Get Report) were rising by 6.45% to $83.51 in pre-market trading on Wednesday morning, after the global technology company that services the auto sector said it will be spinning-off its Powertrain segment.
The new independently operated public company will be known as Powertrain, and once the transaction closes in March of 2018, Delphi shareholders will own stock in both companies.
"Today's announcement represents an exciting opportunity for our businesses by creating two independent companies, each with a distinct product focus, a proven business model, and the flexibility to pursue accelerated investments in advanced technologies that solve our customers' most complex challenges," Delphi CEO Kevin Clark said in the announcement.
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