September 10, 2013

Panasonic To Give KKR Preferential Negotiation Rights Over The Sale Of Its Health Care Unit


The Nikkei reported that Panasonic Corp. (6752) appears set to give U.S. investment fund Kohlberg Kravis Roberts & Co. preferential negotiating rights over the sale of its health-care business.

According to the article:

The consumer electronics giant is expected to sell the majority of its 100% stake in Panasonic Healthcare Co. to KKR for about 150 billion yen. The companies will soon launch negotiations on asset prices and sales conditions, with the aim of reaching an agreement by the end of this month. 

Panasonic Healthcare, which manufactures such products as blood-sugar sensors and electronic medical-record systems, has annual sales of about 110 billion yen. Although the company is profitable, it has been seeking to secure more investment funds to increase its revenues and expand overseas.
Panasonic in March announced its decision to solicit outside funds. KKR, U.S. fund Bain Capital and Toshiba Corp. (6502) participated in the final bidding on Aug. 26.

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