Sony considers partial spin-off and listing of financial services unit
Financial Times
23-05-18 09:19
Sony says it is considering spinning off and relisting shares of its financial services arm to boost investments in its entertainment business. Shares of Sony rose 6.4% on news of the potential split, which would allow the company the ability to invest in entertainment and image sensors at a new level while retaining a 20% stake in the unit. The IPO would be in line with the company's recent expansion of acquisitions in the entertainment business. Now with growing hopes of higher governance standards in Japan and expectations for larger share buybacks, Sony may be on track to fund aggressive merger and acquisition activity without incurring significant taxes by breaking up and selling its financial unit via IPO. Sony is expected to retain a stake of about 20% in order for the deal to go through.