Sharp Corporation of Japan has announced it is selling off its 9.2% shareholdings in car electronics manufacturer Pioneer Corp. The sale was reported in the Japanese newspaper Nikkei.
Sharp had made a short list of potential buyers such as car and medical device manufacturers and sale would be completed as early as the end of the month. Currently, Sharp owns 30 million shares of Pioneer valued at 6.3 billion yen or US$63.80 million. According to Nikkei, Sharp is the largest shareholder on record in Pioneer.
Back in 2007, the two firms entered into a partnership where the companies would develop consumer electronics products such as optical discs and automotive equipment. Pioneer would continue to retain ten million shares or 0.8% shareholdings in Sharp.
Even with the divestment, the two companies would continue to partner on a smaller scale in fields such as optical discs. The proceeds of the sale would pay its corporate debt.
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