Sony Taking Financial Unit In House With $3.73BN Move

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Sony Taking Financial Unit In House With $3.73BN Move
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Sony is turning its listed subsidiary Sony Financial Holdings into a wholly owned in house entity, in a deal that will cost $3.73BN (400 billion yen). According to financial paper Nikkei, the move …

is turning its listed subsidiary Sony Financial Holdings into a wholly owned in house entity, in a deal that will cost $3.73BN .

According to financial paper Nikkei, the move is being made to take control of a stable profit generator during the current pandemic, and mirrors similar action taken by Alibaba and Apple. Sony already owns 65% of the unit and will purchase the remaining shares through a tender offer, paying $24.19 per share, a premium of around 30% over the current price.

The report says the Japanese electronics and entertainment giant will combine its artificial intelligence capabilities with the expertise of Sony Financial, which operates a bank as well as insurance providers. “Our financial business has a value chain that starts and ends within Japan,” said Sony CEO Kenichiro Yoshida at a corporate strategy meeting on Tuesday, according to Nikkei. “With heightening geopolitical risks, we thought it would be best to make this move. We also believe it will lead to long-term improvement of corporate value.

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