Sharp to sell stake in Pioneer
Electronics maker hopes to use the proceeds to help pay off some of $2.14 billion in convertible debt, which is due in September.
Sharp, the struggling electronics manufacturer, is reportedly looking to sell its stake in another consumer electronics company, Pioneer, to raise the funds needed to pay off 200 billion yen ($2.14 billion) in convertible debt.
Citing unnamed sources, the Japan Times reported yesterday that Sharp is looking to dispose of its 9.2 percent stake, or 30 million shares, in the maker of car navigation systems and home electronics to help finance the payment of its debt due this September. Sharp is Pioneer's top shareholder, the Japan Times added.
The idea of selling off its own shares was mooted last year as part of the company's restructuring plans. The two companies intend to keep collaborating and Pioneer will retain its 0.8 percent in Sharp, the sources noted.
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