Sanyo in 'broad agreement' over Panasonic bid: report
Sanyo Electric Co. is largely in agreement with a bid by Panasonic Corp. to take a majority stake in the company and thereby become Japan's largest electronics manufacturer, a press report said Sunday.
Panasonic president Fumio Otsubo and Sanyo president Seiichiro Sano reached the "broad agreement" last month, public broadcaster NHK NHK Nippon Hoso Kyokai (Japan Broadcasting Corporation)
NHK Nihon Hoso Kyokai (Japanese Broadcasting Association)
NHK Nihon Hikikomori Kyokai (anime) without naming its sources.
Reports of Panasonic's plan to acquire Sanyo have been widespread in the Japanese media The communications media of Japan include numerous television and radio networks as well as newspapers and magazines. For the most part, television networks were established based on the capital contribution from existing radio networks at that time. but NHK was the first to report there had been any agreement.
Panasonic intended to make Sanyo one of its subsidiaries, the network said.
No officials were immediately available at the head offices of Panasonic and Sanyo to comment on the reports.
Panasonic would make the bid public, possibly this week, if it managed to reach agreement with Sanyo's top shareholders, the network said.
The major shareholders -- Sumitomo Mitsui Banking Corp., the Daiwa Securities SMBC SMBC Sumitomo-Mitsui Banking Corporation
SMBC Stockport Metropolitan Borough Council (UK)
SMBC South Main Baptist Church
SMBC Single Mother by Choice
SMBC Stowe Mountain Bike Club (Stowe, VT) group, and the Goldman Sachs group -- hold a total of nearly 430 million preferred shares Preferred shares
Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. in Sanyo.
In 2006, Sanyo issued preferred shares worth 300 billion yen (3.1 billion dollars) to the three shareholders.
If converted into common shares, the shares would represent some 70 percent of Sanyo's outstanding issues in terms of voting rights Voting rights
The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.
The type of voting and the amount of control held by the owners of a class of stock. .
Through the acquisition of Sanyo, Panasonic hopes to boost its lithium-ion battery sales and newly-launched solar battery businesses, they said.
The combined projected group sales Group sales
Block sale (of large amounts) of securities to institutional investors.
The distribution of a new security issue to institutional clients. of Panasonic and Sanyo for the year ending March 2009 come to 11.2 trillion yen, surpassing the 10.9 trillion yen sales estimate for Hitachi Ltd., Japan's largest electronics manufacturer.