Struggling Japanese electronics manufacturer Sharp is reportedly looking to sell off its stake in another consumer electronics company, Pioneer, to raise the funds needed to pay off 200 billion yen (US$2.14 billion) in convertible debt.
Citing unnamed sources, The Japan Times reported Sunday Sharp is looking to dispose of its 9.2 percent stake, or 30 million shares, in the maker of car navigation systems and home electronics to help finance the payment of its debt due this September. Sharp is Pioneer's top shareholder, it added.
The notion to sell off its shares was mooted last year as part of the company's restructuring plans. The two companies do intend to keep collaborating and Pioneer will retain its 0.8 percent in Sharp, the sources noted.
Selling off its Pioneer shares is just one of several initiatives Sharp has undertaken to raise the necessary capital to pay off its debt.
The company had earlier this month revealed it will generate about 100 billion yen (US$1.07 billion) through a public stock offering, while also raising 30 billion yen (US$313 million) from different banks--reportedly to be Resona Bank., Mizuho Trust & Banking and Mitsubishi UFJ Trust & Banking Corporation.