Today, 5 November 2009, Panasonic launches a friendly takeover bid on Sanyo. The bid isn’t a surprise.
It was known that since 2004, Sanyo got into trouble. A 2004 earthquake destroyed its main chip plant and it had to be rescued by Goldman Sachs and two Japanese banks.
In 2006 Sanyo was forced to issue preferred shares to advantage of the three financial institutions after a sharp downturn in earnings. An accounting scandal forced Sanyo to discharge its president.
Panasonic, the world’s biggest maker of plasma TV’s, being in search of expertise in the rapidly expanding “green” businesses such as solar panels, rechargeable batteries and energy storage for hybrid and electric cars, expects an important synergy in the takeover. Sanyo is the leading global supplier of rechargeable batteries and has some clients in the car industry.
The takeover bid is expected to be successful because Sanyo’s three major shareholders have already agreed to sell their shares at the offered price and the Chinese anti-monopoly authorities and the US’s anti-trust watchdog are expected to give their approval.
The tender offer to the small shareholders would last until 7 December at the price of Y 131 per share, nearly half Sanyo’s current share price.
Personal opinion
It’s clear that financial and economic crises has made some victims. Companies with heavy debts cannot survive a long period without earnings.
It’s a usual course of things that the strongest companies try to annex their weaker competitors. A merger or a takeover can be forced by banks if they are the major shareholder. If they are preferred shareholders they are in a comfortable position to save their invested capital. In the case of Sanyo it seems that the small shareholders will be the victims because they will only receive half of the current share price.
By : Elise Van Praet
Source: http://www.guardian.co.uk/business/2009/nov/05/panasonic-launches-sanyo-takeover-bid
It was known that since 2004, Sanyo got into trouble. A 2004 earthquake destroyed its main chip plant and it had to be rescued by Goldman Sachs and two Japanese banks.
In 2006 Sanyo was forced to issue preferred shares to advantage of the three financial institutions after a sharp downturn in earnings. An accounting scandal forced Sanyo to discharge its president.
Panasonic, the world’s biggest maker of plasma TV’s, being in search of expertise in the rapidly expanding “green” businesses such as solar panels, rechargeable batteries and energy storage for hybrid and electric cars, expects an important synergy in the takeover. Sanyo is the leading global supplier of rechargeable batteries and has some clients in the car industry.
The takeover bid is expected to be successful because Sanyo’s three major shareholders have already agreed to sell their shares at the offered price and the Chinese anti-monopoly authorities and the US’s anti-trust watchdog are expected to give their approval.
The tender offer to the small shareholders would last until 7 December at the price of Y 131 per share, nearly half Sanyo’s current share price.
Personal opinion
It’s clear that financial and economic crises has made some victims. Companies with heavy debts cannot survive a long period without earnings.
It’s a usual course of things that the strongest companies try to annex their weaker competitors. A merger or a takeover can be forced by banks if they are the major shareholder. If they are preferred shareholders they are in a comfortable position to save their invested capital. In the case of Sanyo it seems that the small shareholders will be the victims because they will only receive half of the current share price.
By : Elise Van Praet
Source: http://www.guardian.co.uk/business/2009/nov/05/panasonic-launches-sanyo-takeover-bid
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