ID :
32370
Tue, 11/25/2008 - 22:01
Auther :
Shortlink :
https://oananews.org//node/32370
The shortlink copeid
Panasonic may offer below-market price of 120 yen per Sanyo share+
OSAKA, Nov. 25 Kyodo - Panasonic Corp. is considering offering a below-market price of about 120 yen per share in Sanyo Electric Co. as it goes ahead with its plan to turn its smaller rival into a subsidiary through a tender offer, sources close to the
matter said Tuesday.
The possible offer price is lower than the 156 yen of Sanyo stock's closing
quote Tuesday on the Tokyo Stock Exchange and around the 250 yen per share that
it is believed Goldman Sachs Group Inc., one of Sanyo's three major creditor
institutions, is aiming at.
The possible 250 yen offer price represents about a 20 percent premium on the
average of Sanyo's stock price over the past three to six months.
Whereas companies conducting tender offers usually buy shares in their
investment targets at a premium to market value, Panasonic may opt to do
otherwise fearing a sizeable fall in Sanyo's stock price, the sources say.
Goldman and the other two shareholders -- Sumitomo Mitsui Banking Corp. and
Daiwa Securities SMBC Co. -- hold Sanyo's preferred shares which would, if
converted to common shares, account for about 70 percent of Sanyo's outstanding
shares as one preferred share can be converted into 10 common shares.
Such a conversion would sharply increase the total number of shares, pushing
down Sanyo's stock price. Panasonic is expected to propose an offer price of
around 120 yen by claiming that Sanyo's current stock price has yet to factor
in the upcoming dilution of the stock value to be caused by the conversion, the
sources said.
Panasonic is also taking a harsh view on the future course of the profitability
of Sanyo's mainstay lithium ion battery and photovoltaic cell businesses amid
the global economic downturn, the sources said.
Panasonic plans to perform due diligence on Sanyo's assets within this week,
after which it will enter into formal negotiations with the three shareholders.
Panasonic plans to launch a tender offer targeting all Sanyo shareholders. But
if the bid is placed below market price, many investors, excluding the three
creditor financial institutions that provided a bailout equivalent to 70 yen
per share, will likely not offer their shares.
In this case, Sanyo's stock will remain listed on the Tokyo bourse, a scenario
complying with Panasonic and Sanyo's plan that Panasonic will respect Sanyo's
management autonomy for the time being, analysts said.
==Kyodo
2008-11-25 22:30:39
matter said Tuesday.
The possible offer price is lower than the 156 yen of Sanyo stock's closing
quote Tuesday on the Tokyo Stock Exchange and around the 250 yen per share that
it is believed Goldman Sachs Group Inc., one of Sanyo's three major creditor
institutions, is aiming at.
The possible 250 yen offer price represents about a 20 percent premium on the
average of Sanyo's stock price over the past three to six months.
Whereas companies conducting tender offers usually buy shares in their
investment targets at a premium to market value, Panasonic may opt to do
otherwise fearing a sizeable fall in Sanyo's stock price, the sources say.
Goldman and the other two shareholders -- Sumitomo Mitsui Banking Corp. and
Daiwa Securities SMBC Co. -- hold Sanyo's preferred shares which would, if
converted to common shares, account for about 70 percent of Sanyo's outstanding
shares as one preferred share can be converted into 10 common shares.
Such a conversion would sharply increase the total number of shares, pushing
down Sanyo's stock price. Panasonic is expected to propose an offer price of
around 120 yen by claiming that Sanyo's current stock price has yet to factor
in the upcoming dilution of the stock value to be caused by the conversion, the
sources said.
Panasonic is also taking a harsh view on the future course of the profitability
of Sanyo's mainstay lithium ion battery and photovoltaic cell businesses amid
the global economic downturn, the sources said.
Panasonic plans to perform due diligence on Sanyo's assets within this week,
after which it will enter into formal negotiations with the three shareholders.
Panasonic plans to launch a tender offer targeting all Sanyo shareholders. But
if the bid is placed below market price, many investors, excluding the three
creditor financial institutions that provided a bailout equivalent to 70 yen
per share, will likely not offer their shares.
In this case, Sanyo's stock will remain listed on the Tokyo bourse, a scenario
complying with Panasonic and Sanyo's plan that Panasonic will respect Sanyo's
management autonomy for the time being, analysts said.
==Kyodo
2008-11-25 22:30:39
