Sony to invest ¥50 billion in ‘scandal-tainted’ Olympus Corp.Published On: Sat, Sep 29th, 2012 | Tech Business | By ANI
Japanese electronics giant Sony is set to invest over 50 billion yen in embattled firm Olympus Corp. as both firms look forward to resurfacing from a drowning sea of losses.
The investment will make cash-bleeding Sony Corp. the single biggest shareholder in Olympus, with slightly more than 11 percent of its outstanding stock.
The firms confirmed the deal in a statement, in which they stated that they would also establish a joint venture to develop endoscopes, with the focus on a type used in keyhole surgery. Sony will hold 51 percent of that venture and Olympus 49 percent.
“At Sony we are aggressively pursuing the growth of our medical business, with the aim of developing it into a key pillar of our overall business portfolio,” the Japan Times quoted Sony President Kazuo Hirai, as saying, in a statement.
According to the paper, Sony will take a 50 billion yen private placement of Olympus shares by the fiscal year end for 1,454 yen a share. The price represents a saving on Olympus” shares on the open market, where they closed Friday on the Tokyo Stock Exchange at 1,520 yen.
Olympus” reputation was badly damaged after its British former chief executive blew the whistle last year on an accounting scam that saw 1.7 billion dollar worth of losses moved off its balance sheet, the paper said. (ANI)