OSAKA, Nov. 4, 2009 (Kyodo News International) --
(Editors: UPDATING WITH FORMAL ANNOUNCEMENT, ADDING INFO)
Panasonic Corp. said Wednesday it will launch a tender offer Thursday for shares of Sanyo Electric Co. (OOTC:SANYY) to acquire more than 50 percent of Sanyo shares and convert the electronics maker into a subsidiary.
The move is expected to boost Panasonic's group sales closer to the level of Japan's largest electrical machinery maker Hitachi Ltd. (NYSE:HIT)
Panasonic's board of directors decided on the tender offer Wednesday morning, while Sanyo's board adopted a resolution to endorse the offer.
The offer, lasting until Dec. 7, is expected to turn out successful as Goldman Sachs group (NYSE:GS) of the United States and two other major Sanyo shareholders, which have more than 50 percent of Sanyo's total outstanding shares, have agreed to sell the shares to Panasonic at the planned price of 131 yen per share. Sanyo share purchases are estimated to cost Panasonic at least 400 billion yen.
Since the tender offer price is far lower than the market level, most individual Sanyo shareholders are expected not to accept the offer. Sanyo shares closed Wednesday at 216 yen on the Tokyo Stock Exchange, down 12 yen from Monday, the previous market day.
Panasonic is expected to complete the procedures to turn Sanyo into a subsidiary in December, about a year after it announced the plan to do so through a tender offer.
The actual tender offer comes more than half a year behind schedule as competition policy watchdogs in countries where Panasonic and Sanyo operate have taken time to examine whether the integration would run counter to antitrust rules.
The integration is expected to boost Panasonic's share of the world battery market. In late October, Sanyo released a plan to sell some of its battery operations to clear concerns about antitrust problems.
The United States is soon expected to become the last country to approve the integration, following China, which gave its approval late last month.
The combined group sales of Panasonic and Sanyo came to 9.54 trillion yen for the business year ended in March, close to Hitachi's 10 trillion yen and nearly 2 trillion above sales of Sony Corp.
