2nd UPDATE:Goldman Sachs To Tender Sanyo Shares To Panasonic
September 18 2009 - 1:49PM
Dow Jones News
Goldman Sachs (GS) said Friday it has signed an agreement to
sell part of its stake in struggling electronics maker Sanyo
Electric Co. Ltd. (6764.TO) to Panasonic Corp. (6752.TO).
In a statement, the U.S. bank said its Oceans Holdings Co. Ltd.
investment vehicle agreed to tender shares equivalent to 15.7% of
Sanyo to Panasonic at Y131 per share, the price agreed to late last
year after lengthy wrangling between Panasonic and Sanyo
shareholders, for a total of Y126.7 billion. Goldman had been
widely expected to sell its entire holding in Sanyo but will now
retain a stake equal to 13.3% of Sanyo common shares.
Daiwa Securities SMBC Principal Investments Co. already agreed
to tender shares equivalent to 25% of Sanyo to Panasonic, while
Sumitomo Mitsui Banking Corp. agreed to tender shares equivalent to
9.3% of Sanyo to Panasonic.
A Panasonic spokesman said that by purchasing the additional
shares from Goldman, it would allow the company to take its stake
in Sanyo to more than 50%.
Sanyo's stock has risen strongly since Goldman first agreed to
the offer. At the close in Tokyo Friday, the shares were worth Y246
apiece, valuing Goldman's remaining holding at Y201.4 billion.
In its statement, the bank said, "at its discretion, Oceans may
dispose of any or all of its shares depending on its ongoing
evaluation of its investment in Sanyo," subject to factors
including prevailing market conditions and investment
considerations.
Osaka-based electronics giant Panasonic is eager to take over
Sanyo's battery operations. Sanyo is the world's biggest maker of
rechargeable batteries, a growing market now that automakers are
accelerating their rollout of hybrid or electric cars.
Late last month, Panasonic said it was still awaiting approval
from antitrust regulators in four countries on its tender offer to
acquire Sanyo and will report on the progress of the deal by late
October. Osamu Hirose, an analyst at Tokai Tokyo Research Center
Co., said taking an additional 15.7% stake from Goldman is enough
for Panasonic because Panasonic needs to save money.
-By Kenneth Maxwell and Yuzo Yamaguchi, Dow Jones Newswires;
813-6895 7564; kenneth.maxwell@dowjones.com