Sony Sells Financial Stake to Fund Games Unit

Sony spins off its policy company, to raise cash for its other businesses.

Sony announced that it bequeath be marketing its stake valued at ¥332 billion ($2.9 billion) in its Japanese insurance policy business, Sony Financial Holdings Inc., in Japan's largest initial public offering (IPO) of the year to help investment company its electronics and gaming divisions. As of October 1, Sony will sell its 725,000 shares (34.5 percent of its shares) and issue and additive 75,000 at about ¥415,000 per ploughshare.

"Sony could use the funds for several options to strengthen its electronics and game businesses," said Mitsuhiro Osawa, a Tokyo-based analyst at Mizuho Investors Securities Co. with an "Exceed" evaluation on Sony's stock. "A put in the price of the PlayStation 3 is one option."

JPMorgan Chase &ere; Co. and Nomura Holdings Inc. are managing the offering, Japan's biggest since Aozora Bank building Ltd.'s ¥351 billion offer last November. Sony Financial volition raise ¥31.1 one million million from the sale and plans to invest ¥16.5 1E+12 in a venture with Aegon NV, the second-largest Dutch insurer. The division holds Sony Life assurance Centennial State., automobile insurance company Sony Assurance Inc. and online bank Sony Bank Inc.

T&D Holdings Inc., Japan's sole publicly traded biography insurer, fell 16 percent this year along with the bulk of fiscal and indemnity companies. "Investors are stillness concerned about the losses from subprime loans. The question for the Sony Business Initial offering is how information technology can persuade investors that IT is free from that concern," commented Wataru Kasatani, a financial psychoanalyst at Meiji Dresdner Asset Management Co.

Shares of Sony (SNE) rose 2.70 percent to $49.07 during trading Tues.

Source: Bloomberg

https://www.escapistmagazine.com/sony-sells-financial-stake-to-fund-games-unit/

Source: https://www.escapistmagazine.com/sony-sells-financial-stake-to-fund-games-unit/

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