Pioneer to Get Bailout from Hong Kong Firm

Economy

Tokyo, Sept. 12 (Jiji Press)--Struggling Japanese car electronics maker Pioneer Corp. <6773> said Wednesday that it will receive financial assistance from Hong Kong-based investment firm Baring Private Equity Asia.

Pioneer will accept an equity investment of between 50 billion yen and 60 billion yen from BPEA by the end of this year.

The Japanese company will also receive a bridge loan of 25 billion yen from BPEA on Tuesday to help repay debts due late this month.

The investment will make BPEA the largest shareholder of Pioneer. The Japanese company said it will remain public for the time being after the investment.

BPEA is considering acquiring a majority of voting rights in Pioneer, sources familiar with the situation said.

[Copyright The Jiji Press, Ltd.]

Jiji Press