Development Bank of Japan Inc. (DBJ) and Sony Corp. today announced that they have entered into a non-binding memorandum of understanding that outlines their intent for Sony to sell to DBJ Sony's chemical products businesses operated by Sony Chemical & Information Device Corporation (SCID), a wholly-owned subsidiary of Sony.
DBJ and Sony are aiming to sign definitive and legally-binding agreements by the end of May 2012, subject to due diligence on the businesses contemplated to be sold and negotiation of detailed terms and conditions of the sale. Thereafter, the two parties will aim to complete the sale during the third quarter of the fiscal year ending March 31, 2013, subject to the receipt of any necessary government authorizations and approvals.
SCID is engaged in the manufacture and sale of chemical products, including adhesive materials such as anisotropic conductive film, optical materials such as optical elasticity resin, and magnetic devices. SCID also manufactures products sold by Sony, such as optical disk media, magnetic tape, laminate substrates, FeliCa cards and medical print media. The contemplated sale would cover SCID's domestic and overseas operations relating to the manufacture and sale of chemical products. SCID?s manufacturing business of products sold by Sony, such as optical disk media, magnetic tape, laminate substrates, FeliCa cards and medical print media, will be outside of the scope of the contemplated sale to DBJ, and will continue to be retained and operated within the Sony group.
The move is part of Sony's realignment of its business portfolio. DBJ and Sony believe that the independence of these chemical products businesses, coupled with the utilization of DBJ?s domestic and international networks and other diverse business resources, will enable the chemical products businesses to achieve further growth and development in the future.
Sony said a purchase price had not been decided. The Nikkei business daily reported earlier that the bank would pay 30 billion to 40 billion yen ($360-480 million) for the purchase.
Over the past several months Sony has been dumping production capacity. In December it agreed to sell its nearly 50 percent share in a joint liquid crystal display venture with Samsung Electronics to the Korean company, exiting a fabrication partnership.
Last year, Sony also agreed to merge its production of small LCDs with that of Toshiba and Hitachi in company Japan Display, which is two-thirds owned by the Innovation Network Corp of Japan.