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Sony sees US$1.2b gain from stake sale
Source: Bloomberg News |
February 21, 2013, Thursday
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Print Edition
Print Edition
SONY Corp predicted a 115 billion yen (US$1.2 billion) gain following the sale of a stake in health-care data provider M3 Inc as it sheds assets and tries to avoid a fifth straight annual loss.
The TV maker will sell 6 percent of M3 to Deutsche Bank AG's securities arm, according to a statement yesterday that didn't give a price. The deal will produce a largely paper gain for Sony, linked to a revaluation of its remaining holdings.
Sony will book the gain this quarter, along with the profit from the US$1.1 billion sale of its New York offices. The deals suggest Japan's biggest consumer-electronics exporter is banking on about 180 billion yen of profit from asset sales to achieve its annual net income target of 20 billion yen, according to Hideki Yasuda, an Ace Securities Co analyst.
"This gives the impression that the company is desperate to be in the black," he said. "I'm surprised by the size of the loss at its core electronics business."
The maker of Bravia TVs is heading for a ninth straight annual loss in the business amid slowing demand and competition from Samsung Electronics Co. Sony's Xperia smartphone and tablet also are struggling to keep pace with sales of Apple devices.
M3, which provides online data for doctors, has risen 62 percent in the past year in Tokyo trading, boosting its market value to US$2.8 billion, according to data compiled by Bloomberg News. The firm fell 2.6 percent to 162,000 yen yesterday before the sale notice. Sony rose 0.3 percent to 1,355 yen.
The M3 stake being sold is worth about US$165 million, based on yesterday's closing price. Most of the gain from the sale will be triggered by Sony's holdings falling below 50 percent. That will let the company treat its remaining 49.8 percent stake differently for accounting purposes.
Sony will disclose the price paid for the 95,000 shares when the transaction is completed on Monday, according to Shinji Obana, a Tokyo-based spokesman. Miki Joho, a Tokyo-based spokeswoman for Deutsche Securities Inc, declined to comment.
Sony, maker of the PlayStation gaming console, earlier this month posted a nine-month net loss of 50.9 billion yen. The company reiterated its full-year profit forecast of 20 billion yen.
The TV maker will sell 6 percent of M3 to Deutsche Bank AG's securities arm, according to a statement yesterday that didn't give a price. The deal will produce a largely paper gain for Sony, linked to a revaluation of its remaining holdings.
Sony will book the gain this quarter, along with the profit from the US$1.1 billion sale of its New York offices. The deals suggest Japan's biggest consumer-electronics exporter is banking on about 180 billion yen of profit from asset sales to achieve its annual net income target of 20 billion yen, according to Hideki Yasuda, an Ace Securities Co analyst.
"This gives the impression that the company is desperate to be in the black," he said. "I'm surprised by the size of the loss at its core electronics business."
The maker of Bravia TVs is heading for a ninth straight annual loss in the business amid slowing demand and competition from Samsung Electronics Co. Sony's Xperia smartphone and tablet also are struggling to keep pace with sales of Apple devices.
M3, which provides online data for doctors, has risen 62 percent in the past year in Tokyo trading, boosting its market value to US$2.8 billion, according to data compiled by Bloomberg News. The firm fell 2.6 percent to 162,000 yen yesterday before the sale notice. Sony rose 0.3 percent to 1,355 yen.
The M3 stake being sold is worth about US$165 million, based on yesterday's closing price. Most of the gain from the sale will be triggered by Sony's holdings falling below 50 percent. That will let the company treat its remaining 49.8 percent stake differently for accounting purposes.
Sony will disclose the price paid for the 95,000 shares when the transaction is completed on Monday, according to Shinji Obana, a Tokyo-based spokesman. Miki Joho, a Tokyo-based spokeswoman for Deutsche Securities Inc, declined to comment.
Sony, maker of the PlayStation gaming console, earlier this month posted a nine-month net loss of 50.9 billion yen. The company reiterated its full-year profit forecast of 20 billion yen.
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