Sanyo Electric Co. has decided to sell all shares of its solely owned subsidiary Sanyo Semiconductor Co. to Advantage Partners, fully withdrawing from the semiconductor business, according to a Yomiuri Shimbun
Sanyo had given preferential rights to the Japanese investment fund regarding the sale of its semiconductor business.
Sanyo Electric first considered keeping part of its shares in the subsidiary, but opted to sell all of them as the business is easily influenced by market conditions and requires large-scale capital investment, according to the the Japanese newspaper.
The two sides are expected to reach a basic agreement in early October. The sale is likely to be valued at more than 100 billion yen, sources said.
The electronics firm is also expected to conclude a basic agreement with Kyocera Corp. on the sale of its cell phone business early next month.
Sanyo Electric will disclose plans for its various business units at the end of November. The withdrawal from the semiconductor and cell phone businesses is likely to be the key reform in the plan, the sources said.