Panasonic to buy Sanyo

PANASONIC ANNOUNCED today that it will make a tender offer to acquire a majority stake in Sanyo Electric.

Panasonic, Japan's largest consumer electronics company, is said to be interested in buying Sanyo because the company represents opportunities for Panasonic to diversify. Sanyo is currently the world's leading manufacturer of lithium-ion batteries and is an innovator in developing green-energy products such as solar cells.

The offer reportedly was finalised at board meetings of the two companies on Friday and is expected to go forward in the first quarter of next year.

Japanese investment banks Sumitomo Mitsui and Daiwa Securities, along with US based Goldman Sachs, own about $3 billion in preferred shares in Sanyo Electric that they bought in March 2006. If converted to common stock, those shares would represent about 70 per cent of Sanyo's equity ownership. The shares can only be sold with Sanyo's permission and their convertability to common stock expires in March 2009.

Panasonic reportedly will pay ¥131 per share (about $1.47 or £0.98) for its stake in Sanyo. µ

L'Inq
PC World