Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo  >  Pioneer Corp    6773   JP3780200006

PIONEER CORP

(6773)
  Report  
SummaryChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Baring Private Equity Asia to buy Japan's Pioneer for $900 million

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/07/2018 | 06:51am EDT
FILE PHOTO: Pioneer Corp's logo is pictured at the 45th Tokyo Motor Show in Tokyo

TOKYO (Reuters) - Baring Private Equity Asia will buy cash-strapped Japanese electronics firm Pioneer Corp for $900 million, in a two-stage investment that marks the latest attempt by the country's car navigation system makers to survive.

The buyout firm is providing cash that is much needed by Pioneer, which had 50 billion yen ($443 million) of interest-bearing debt as of end-March and which will need further investment to be competitive.

Car navigation system makers are trying to keep up with a shift by carmakers into new technologies such as autonomous driving, connected cars and electric vehicles.

Pioneer will issue new shares worth 77 billion yen to Baring, and the private equity firm will later buy 25 billion yen of shares from existing shareholders, both groups said on Friday.

Pioneer, which posted a net loss of 7.1 billion yen in the year ended in March, flagged to investors in August that it was considering a major review of its car audio systems business and was in tie-up talks with several firms.

"I feel deep responsibility for what has happened, but an alliance with Baring is essential to restructure Pioneer," Pioneer Chief Executive Koichi Moriya told a news conference.

Jean Eric Salata, chief executive of Baring Private Equity Asia, said, "The market's very competitive and it's going to require a lot of investments and it's going to require changes in the ways the company makes decisions and implements strategy."

Pioneer will issue new shares to Baring at 50 yen a share while Baring will buy shares from the existing shareholders at 66 yen each, lower than Friday's close of 88 yen.

Pioneer's Moriya said the prices were appropriate considering that if Pioneer was not going to get a cash injection, the share price would fall further and the company could not go through the reform.

After selling its consumer electronics business in 2014, Pioneer focused mostly on car navigation systems, a technology rendered largely obsolete thanks to maps available on smartphones.

Development costs for advanced navigation systems have soared as companies including Panasonic Corp and Bosch [ROBG.UL] have poured money into next-generation cockpits for cars that make driving safer and luxurious, edging out cash-strapped companies like Pioneer.

Pioneer's deal follows Hitachi Ltd's sale of car navigation system maker Clarion to France's Faurecia in October.

This week Alpine Electronics won support from its shareholders to be sold to its larger affiliate Alps Electric.

(Reporting by Junko Fujita; Editing by Chris Gallagher, Sunil Nair, William Mallard and Adrian Croft)

By Junko Fujita

Stocks mentioned in the article
ChangeLast1st jan.
ALPINE ELECTRONICS INC -5.46% 1386 End-of-day quote.0.00%
ALPS ALPINE CO LTD -0.80% 1853 End-of-day quote.-9.12%
FAURECIA -3.73% 35.4 Real-time Quote.11.19%
HITACHI, LTD. -1.32% 3665 End-of-day quote.29.73%
PANASONIC CORPORATION -1.00% 904.6 End-of-day quote.-5.77%
PIONEER CORP 0.00% 65 End-of-day quote.1.56%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on PIONEER CORP
04/25PIONEER : Payment for Fractional Shares (PDF 112 KB)
PU
04/17PIONEER : and Canon agree to co-develop 3D-LiDAR sensor, drive the development o..
PU
03/31PIONEER : Announces Changes in Management (PDF 90 KB)
PU
03/26PIONEER : Announces Delisting of Shares (PDF 87 KB)
PU
03/25NISSAN MOTOR : Main events scheduled for Wednesday, March 27
AQ
02/14PIONEER CORP : 3rd quarter results
CO
02/12PIONEER CORP : Proxy Statments
CO
01/24PIONEER : wins shareholder approval for H.K. fund capital injection
AQ
01/15Pioneer Showcases Automotive Technologies to Enhance Every Drive
AQ
01/12PIONEER : showcases smartphone-ready digital media receiver at CES 2019
AQ
More news
Financials (JPY)
Chart PIONEER CORP
Duration : Period :
Pioneer Corp Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
 
Mean consensus
Number of Analysts
Average target price -
Spread / Average Target -100%
EPS Revisions
Managers
NameTitle
Koichi Moriya President, CEO & Representative Director
Susumu Kotani Chairman
Kunio Kawashiri Director, Manager-Finance & Accounting
Mitsumasa Kato Executive Officer & Senior Manager-Technology
Masahiro Tanizeki Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
PIONEER CORP1.56%0
DENSO CORP-8.75%30 978
CONTINENTAL AG5.01%28 271
APTIV12.64%17 881
HYUNDAI MOBIS CO., LTD.--.--%16 892
MAGNA INTERNATIONAL INC.-3.78%14 144