I’m not sure if there’s something in the water in Japan today but, hours after Sharp confirmed a deal that will boost it with $4.6 billion in funding, fellow Japanese tech struggler Panasonic has announced plans to raise $1.9 billion (150 billion yen) through the sale of bonds.
The planned public offering will take place in its home country as early as next month and the proceeds will help pay off debt.
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Here’s the information that went out on the wire:
Panasonic Corporation (NYSE:PC)(TOKYO:6752)(“Panasonic”) announced that its Board of Directors today resolved to issue straight bonds. Panasonic will offer the bonds in order to enhance the stability of financial position with long-term stabilization of debt.
An outline of the issuance of bonds is as follows:
1. Type of Securities: Unsecured Straight Bonds
2. Amount: Up to 150 billion yen
3. Period of Issuance: In or after October 2012
4. Offering Method: Public Offering in Japan (planned)
5. Purpose of Funding: Redemption of commercial paper and bonds
Details of the issuance of bonds, including the total amount of bonds, offering price, interest rate, maturity and date of issue, will be determined in the later stage.
The company has been in better health this year and, in June, it posted its first profitable quarter of business in 18 months. Income over the period reached $164 million, boosted by the trimming of 36,000 jobs during the financial year.
Despite increased optimism, shares fell this month after its ratings were cut.
Panasonic is well known for its cameras and struggling TV business but it’s also a leading producer of phones in Japan. Last year the company said it would return to the European mobile market in 2012, and it announced its first model — The Eluga — in February.
Panasonic’s poor fiscal health has not been helped by China’s hostility to Japan following the latter’s move to buy the disputed Diaoyu Islands. The company has been affected by protests, which have been violent, at times and it recently revealed that, while none of its personnel were injured, three of its factories in China were affected during the protests.
The Diayou disagreement has also been hashed out online, as numerous Japanese websites have been hacked or defaced by pro-China activists. Search engine Baidu controversially waded into the debate when it featured a Google-style doodle of a Chinese flag planted on the islands on its homepage, but it later took the opportunity to encourage citizens to renounce violence.
Image via Getty Images / AFP / Robyn Beck