Sony To Sell Its Chemical Products Businesses To Development Bank of Japan
Development Bank of Japan Inc. (DBJ) and Sony have entered into definitive agreements regarding Sony?s sale to DBJ of chemical products businesses operated by Sony Group including Sony Chemical & Information Device Corporation (SCID), a wholly-owned subsidiary of Sony.
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 other non-chemical products sold by Sony, such as optical disk media, magnetic tape, laminate substrates, FeliCa cards and medical print media. The contemplated sale would cover domestic and overseas operations of Sony Group, including operations of SCID, relating to the manufacture and sale of chemical products.
Before the completion of the contemplated sale, Sony will first transfer certain of its chemical products-related businesses to SCID, while at the same time SCID will transfer its non-chemical related businesses, as well as a portion of SCID's assets, to Sony. Thereafter, a holding company fully funded by DBJ, will acquire from Sony all of the issued shares of SCID and a certain subsidiary in Sony Group engaged in the chemical products-related business, as well as licenses for certain Sony patents related to these businesses.
As a result of the contemplated sale, the new company that will result from the contemplated sale will further expand its businesses by leveraging the expertise in material development and process technologies currently owned by SCID, including those in the adhesive and optical materials sectors, and by fully utilizing the funds provided by DBJ, together with other supplementary resources that it will aim to secure. The new company also intends to introduce products that meet customers' needs by utilizing its network of manufacturing and sales bases in Japan and overseas, and increasing cost competiveness.
The consideration for the contemplated sale is expected to be 58.0 billion yen. DBJ and Sony aim to complete the sale in the fall of calendar 2012, subject to the receipt of any necessary government authorizations and approvals.
Sony is currently evaluating the impact of this transaction on its consolidated financial results forecast for the fiscal year ending March 31, 2013.
Before the completion of the contemplated sale, Sony will first transfer certain of its chemical products-related businesses to SCID, while at the same time SCID will transfer its non-chemical related businesses, as well as a portion of SCID's assets, to Sony. Thereafter, a holding company fully funded by DBJ, will acquire from Sony all of the issued shares of SCID and a certain subsidiary in Sony Group engaged in the chemical products-related business, as well as licenses for certain Sony patents related to these businesses.
As a result of the contemplated sale, the new company that will result from the contemplated sale will further expand its businesses by leveraging the expertise in material development and process technologies currently owned by SCID, including those in the adhesive and optical materials sectors, and by fully utilizing the funds provided by DBJ, together with other supplementary resources that it will aim to secure. The new company also intends to introduce products that meet customers' needs by utilizing its network of manufacturing and sales bases in Japan and overseas, and increasing cost competiveness.
The consideration for the contemplated sale is expected to be 58.0 billion yen. DBJ and Sony aim to complete the sale in the fall of calendar 2012, subject to the receipt of any necessary government authorizations and approvals.
Sony is currently evaluating the impact of this transaction on its consolidated financial results forecast for the fiscal year ending March 31, 2013.
