Sony to take full control of listed financial arm for $3.7 billion


FILE PHOTO – The Sony logo is seen on a building in the Manhattan borough of New York City, New York, U.S., January 16, 2019. REUTERS/Carlo Allegri

TOKYO (Reuters) – Sony Corp (6758.T) will turn its financial arm, Sony Financial Holdings Inc (8729.T), into a wholly owned unit through a tender offer worth about 400 billion yen ($3.72 billion), the Japanese electronics and entertainment giant said on Tuesday.

The deal will allow Sony to strengthen its presence in the fintech field to compete with global tech majors such as Alibaba Group Holding Ltd (BABA.N) and Apple Inc (AAPL.O).

It also reflects Chief Executive Kenichiro Yoshida’s strategy of making revenue streams more stable following a major revamp by his predecessor which shifted Sony’s focus away from low-margin consumer electronics to entertainment content and subscription-based businesses.

The deal is the biggest strategic move for Sony under Yoshida since a $2.3 billion acquisition of EMI Music Publishing, announced soon after Yoshida took the helm in 2018.

Sony already owns 65% of Sony Financial. It plans to offer about 2,600 yen for each remaining Sony Financial share – a premium of about 26% over Monday’s closing price of 2,064 yen.

Sony Financial, a consistently stable revenue source for Sony, has banking, life and non-life insurance, credit card and nursing care businesses in Japan with about 11,000 staff. Total assets stood at 14.5 trillion yen as of the end of last year.

It contributed operating profit of 129.6 billion yen in the year ended in March, or about 15% of the group.

The plan, first reported by the Nikkei business daily earlier on Tuesday, sent shares of Sony Financial up nearly 17% to 2,412 yen before trading of the stock was suspended. Sony Corp shares rose 3.3% in a broader market that ended up 1.5%.

($1 = 107.4000 yen)

Reporting by Makiko Yamazaki; Editing by Himani Sarkar and Christopher Cushing

Products You May Like

Articles You May Like

Prepare to study in Canada
Study permit: Who can apply
Ontario Retains The Most Of Its Immigrants Of Any Canadian Province Or Territory
British Columbia Issues 185 Invitations In New PNP Draw
Canadian Businesses Optimistic About Economic Prospects Over Coming Year
Backlog Of Canada Permanent Resident Card Applications Restricts Travel For Some
Canada Battling Large Backlog Of Permanent Resident Card Applications

Leave a Reply

Your email address will not be published. Required fields are marked *