Premium Audio Company, LLC and Sharp Corporation (TSE:6753) signed a letter of intent to acquire Home AV Business of Onkyo Home Entertainment Corporation (JASDAQ:6628) for ¥ 3.2 billion on April 29, 2021. Premium Audio Company, LLC and Sharp Corporation reached an agreement to acquire Home AV Business of Onkyo Home Entertainment Corporation on May 26, 2021. Premium Audio Company will own approximately 75% and Sharp will own approximately 25% of Home AV Business. As of September 9, 2021 Premium Audio Company will own approximately 77% and Sharp will own approximately 23% of Home AV Business. The transaction is also includes the assumption of certain liabilities. In addition, future commissions on certain sales would be payable. As per terms of transaction, Home AV Business will be transferred to new company formed by Premium Audio Company, LLC and Sharp Corporation. Upon consummation of the transaction, the business will be run by Paul Jacobs and the Klipsch management team.
As on March 31, 2021, reported sales of ¥ 3.2 billion and operating income of ¥ -1.4 billion. The transaction is subject to the approval of Onkyo's shareholders at its Ordinary General Meeting of Shareholders scheduled for June 25, 2021, and the satisfaction of certain other conditions. After that, the approval of the transfer will be consulted at the Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2021. Transaction is subject to approval to of the boards of directors of Premium Audio Company, LLC, Sharp and the new transferee company, Clearance from competition authorities, due diligence by Premium Audio Company, LLC and Sharp is completed and certain percentage or more of the employees involved in the business to be transferred shall be employed by the new transfer company. As on June 25, 2021, the shareholders of Onkyo approved the transaction and was previously approved by Onkyo's Board of Directors. Transaction is also subject to customary and regulatory closing conditions. As of September 9, 2021 all condition were fulfilled. The deal is expected to be completed by May 20, 2021. As of May 26, 2021, transaction is expected to complete on July 1, 2021. As of July 1, 2021, completion of the transaction is planned in July 2021. The transaction is expected to be consummated on or before August 30, 2021.

Premium Audio Company, LLC and Sharp Corporation (TSE:6753) completed the acquisition of Home AV Business from Onkyo Home Entertainment Corporation on September 9, 2021.