Sanyo Electric Co., which is expecting a second year of record losses, will sell 300 billion yen ($2.6 billion) worth of new shares by the end of February to help pay for job cuts, capital spending and research development.
Goldman Sachs Group Inc. and Daiwa Securities SMBC Co. will each buy 125 billion yen of preferred stock, which don't have voting rights, according to a statement today from the Osaka- based electronics maker. Sumitomo Mitsui Financial Group Inc. will buy 50 billion yen of shares.
Sanyo needs cash to pay for a three-year plan to cut 15 percent of its workforce, close factories and invest in solar panels, rechargeable batteries and other environment-related businesses. Sanyo said on Nov. 18 that it planned to raise 200 billion yen to 300 billion yen from a share sale.
Sanyo will use the money raised to fund investments in batteries, solar panels, digital cameras, mobile phone systems and other business related to energy, environment and mobile gadgets. It is also looking to raise money through selling real estate, shares of other companies it owns, and cutting executive salaries.