| Panasonic To Spend Up To Y818.4bn To Buy Shares In Two Units |
|
29/07/2010 12:48 (562 Day 18:21 minutes ago) | |||||
|
The FINANCIAL -- Panasonic Corp. (6752) said on July 29 it will spend up to Y818.4 billion buy all remaining shares in subsidiaries SANYO Electric Co. (6764) and Panasonic Electric Works Co. (6991) to turn them into wholly owned units, Nikkei.com informs.
To finance the tender offer for the shares it doesn't own in the two majority-held units, the Japanese electronics giant also said it has registered to be able to issue up to Y500 billion in new shares.
The tender offer will take place between Aug. 23 and Oct. 6, the company said.
Panasonic will pay Y138 per SANYO Electric share and Y1,110 per Panasonic Electric Works share. SANYO shares surged 26% to Y149 on the Tokyo Stock Exchange Thursday, while Panasonic Electric Works shares also jumped 15% to Y1,124.
Panasonic said it and the two units will hold a press conference at 0930 GMT.
By taking full control of the units, Panasonic aims to speed up decision-making and increase efficiency as it looks to shift its focus from the home electronics market--which is facing increasing competition and shrinking margins--to its fast-growing and lucrative businesses in renewable energy and energy conservation.
Sanyo, a strong player in rechargeable lithium ion batteries and solar panels, and Panasonic Electric Works, which makes lighting equipment, sensors and other components, are expected to play key roles in Panasonic's green energy business.
Separately, the company also reported its April-June earnings, saying that it swung to a net profit in the quarter from a year earlier thanks to fixed cost cuts as well as sharply improved results in flat-panel television sets and car electronics.
The company said it posted a group net profit of Y43.68 billion for the three months to June, reversing a year-earlier net loss of Y52.98 billion. The figure was better than a Y17.90 billion net profit mean estimate from a survey of three analysts by Thomson Reuters.
The company reported an operating profit of Y83.84 billion for the period, compared with an operating loss of Y20.18 billion a year earlier. Group revenue rose 36% to Y2.161 trillion from Y1.595 trillion.
For the full fiscal year through March, the company raised its net profit forecast to Y85.00 billion from its prior projection of Y50.00 billion, while also lifting its operating profit outlook to Y310.00 billion from Y250.00 billion and revenue forecast to Y8.900 trillion from Y8.800 trillion.
Panasonic's earnings are based on U.S. accounting standards.
|
|
|
