Sanyo to finalize deal to sell cellphone operations to Kyocera

Jan 16, 2008
Struggling Sanyo Electric Co. will sign a final agreement to sell its cellphone operations to Kyocera Corp. possibly by the end of next week, sources familiar with the situation said Wednesday.
The cost of the transaction will likely amount to 45 billion to 50 billion yen, the sources said. The deal would signify the first amalgamation of cellphone operations between Japanese manufacturers.
The envisioned transaction includes sale of parts of the premises and buildings of Sanyo's factory in Daito, Osaka Prefecture, where Sanyo engineers have been developing cellphones.
Under the proposed deal, Kyocera will take over cellphone operations, including personal-handy system operations, as well as employees in charge of the cellphone business, they said.
Last October, Sanyo and Kyocera struck a basic agreement on the sale. The two have since been trying to hammer out details of the deal, including its cost and how to handle Sanyo's cellphone-related patents.
The deal will give Kyocera access to Sanyo's marketing network in North America. Kyocera is keen on bringing its North American cellphone operations into the black on the strength of the acquisition of the marketing network, they added.

Sanyo threatened with delisting after understating losses

25 Dec, 2007

Tokyo (dpa) - Sanyo Electric Co faces delisting from the Tokyo Stock Exchange after it announced Tuesday that it had understated its losses for the past six years by tens of millions of dollars.

The Japanese electronics maker and the world's largest maker of rechargeable batteries said it had suffered losses of 484.5 billion yen (4.24 billion dollars) from April 2000 to March 2006 although it had reported losses of only 478.6 billion yen during the period.
"The revisions to the securities statements are significant," the Tokyo Stock Exchange said. "Depending on further examination, the revisions may be of a nature that warrants the delisting of the shares."
Sanyo said it would cut the salaries of seven top managers and strike pension payments for board members for failing to prevent the miscalculations, adding that they had led to the mistaken payment of dividends.
The Osaka-based company said the reason for the understated losses was insufficient internal controls.
Japan's Securities and Exchange Surveillance Commission recommended that Sanyo be fined 8.3 million yen.
Sanyo revealed the misstated earnings as it was seeking to achieve its first profit in four years after creditors bailed it out last year in return for stock.