Japanese TV Makers Sell Assets to Increase Capital
These are troubled times, and probably none more so for Japanese TV makers such as Panasonic, Sony, and Sharp. According to a recent Reuters' report, Panasonic has plans to raise US$1.34 billion in capital by offloading some of its property and shares by end March of 2013. This was conveyed to Reuters by the Panasonic's chief financial officer, Mr Hideaki Kawai. He added that the company owns land and buildings within Japan and overseas, although he declined to mention which properties were targeted for the offload. Panasonic's desperate measures follows a second year of heavy losses, which has led to concerns that the company may be forced out of business altogether.
Japan's other troubled TV manufacturers, namely Sony Corp and Sharp Corp, are also selling buildings and businesses in a bid to raise a combined US$3 billion worth in capital. Sharp, in particular, has already mortgaged most of its assets, as they wait for a proposed deal with Qualcomm who may claim a 5 percent stake in the company. The AQUOS maker is also considering alliances with other firms, such as BYD Co Ltd and the Taiwan-based Hon Hai. Sony, on the other hand, has plans to ramp up its smartphones, gaming peripherals, and cameras, as the BRAVIA maker considers selling off its New York headquarters for approximately US$1 billion, as well as its battery manufacturing arm to a group of U.S. investment banks.