Pioneer to Become Fully Owned Unit of Hong Kong Fund BPEA
Tokyo, Dec. 7 (Jiji Press)--Struggling Japanese car electronics maker Pioneer Corp. <6773> said Friday that it has decided to become a wholly owned unit of Baring Private Equity Asia in order to accelerate its business restructuring under the wing of the Hong Kong investment fund.
BPEA is set to spend more than 100 billion yen on the acquisition of Pioneer.
If the acquisition plan is approved at an extraordinary meeting of Pioneer shareholders in January 2019, the company will be delisted from the Tokyo Stock Exchange in March.
Over the next two years, Pioneer, which was once a major player in the audio equipment industry, will shed some 3,000 jobs in and outside Japan, or about 15 pct of its overall workforce.
BPEA plans to pump 77 billion yen in fresh capital into Pioneer in March mainly by accepting new Pioneer shares to be issued under a third-party allotment scheme.
[Copyright The Jiji Press, Ltd.]