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Tuesday January 22, 5:08 AMSanyo says selling mobile phone unit to Kyocera
The unit, estimated to be worth 50 billion yen (470 million dollars), will be transferred on April 1, Sanyo said in a statement. Taking into account debts, cash and deposits, the total value of the sale is estimated to be around 40 billion yen, the company said, adding that the final amount will be decided later. Sanyo decided "that a transfer of the business to Kyocera would be the ideal solution for both business value and ease of succession," the statement said. Sanyo entered the mobile phone manufacturing business in 1994 and primarily used CDMA technology, a segment with strong competition. Kentaro Yamagishi, an executive vice president of Sanyo, attempted to calm the affected workers. "Kyocera has said that in addition to highly valuing Sanyo's excellent human resources, they also highly value Sanyo's North America client base and Sanyo's technological development capability," he said. "As for the merging of these two businesses, I firmly believe that it will offer a wider spread of both facilities and opportunities to employees," he said in the statement. The decision is not likely to significantly affect Sanyo's earnings for the fiscal year to March, the company added. Sanyo had granted Kyocera priority negotiating rights under an earlier agreement approved by the boards of the two companies. Sanyo is struggling to return from the red amid fierce price competition. After suffering an annual net loss for the past three years, Sanyo is increasing its focus on rechargeable batteries, which have been a bright spot in its otherwise lacklustre recent performance. A scandal over alleged window-dressing of its accounts has only added to its woes. Sanyo Electric said this month it had agreed to pay an 8.3 million yen (76,000 dollar) fine after correcting six years of earning reports. The Osaka-based firm, which started out making bicycle lamps after World War II, has been accelerating its restructuring with thousands of job cuts as part of efforts to stem losses. |
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