Panasonic to buy out Sanyo, other units for a `green' makeover
29 July 2010
Panasonic Corp, the world's fourth-largest flat TV maker, plans to buy out its subsidiaries Sanyo Electric and Panasonic Electric Works for around 818.4 billion yen ($9.4 billion) and transform itself into a `green' business conglomerate by the year 2018.
Panasonic, which currently owns 50.05 per cent in Sanyo Electric (as of 31 March), will acquire all of the issued shares of Sanyo (excluding the treasury shares) through a tender offer to make it a wholly-owned subsidiary, Panasonic said in a release.
Panasonic will pay 138 yen for each Sanyo share, a 9.5 per cent premium over the average price of the past three months, and 1,110 yen for Panasonic Electric Works, a 17.1 per cent premium. The offer will start on 23 August and close on 6 October.
Panasonic bought the controlling stake in Sanyo in December 2009 for about $4 billion, thereby gaining control of its business of rechargeable batteries, solar cells, housing materials and lighting equipment (See: Panasonic acquires majority stake in Sanyo for $4.6 billion)
The company, however, has not set a minimum or maximum target for acquisition, president Fumio Ohtsubo said.
Panasonic group hopes to emerge the `No 1 Green Innovation Company in the Electronics Industry' towards 2018, the 100th anniversary of its foundation.