Shares in struggling Japanese electronics maker Sharp rocketed more than 14 per cent on Monday morning after a weekend report that it plans to sell its entire 9.2 per cent stake in rival Pioneer.
Sharp shares were up 14.02 per cent at 382 yen (HK$32) on the Tokyo Stock Exchange at the break while Pioneer climbed 6.19 per cent to 223 yen.
Sharp, the largest shareholder in Pioneer, aims to sell the 30 million shares in a lump-sum deal as early as this month to companies that can expect synergies with Pioneer’s operations, the Nikkei newspaper reported.
It has been holding negotiations with potential buyers – manufacturers in the automobile and medical device industries – and is believed to have narrowed down the list to just a few, the business daily said.
The shares were worth 6.3 billion yen (US$64 million) based on Pioneer’s stock price as of Friday. Sharp plans to use gains on the sale to help repay debts, the Nikkei said.
“The sale will obviously be a boon to Sharp in its cash-raising quest,” said Toshiyuki Kanayama, market analyst at Monex, noting that news on Sharp have been more positive of late.