Pioneer Reconstruction Plan Approved by Shareholders

Economy

Tokyo, Jan. 25 (Jiji Press)--Struggling Japanese car electronics maker Pioneer Corp. <6773> gained approval from its shareholders on Friday to accept a capital injection from a Hong Kong investment fund for reconstruction.

Baring Private Equity Asia will spend 102 billion yen to make Pioneer a fully owned subsidiary.

The Japanese company is expected to be delisted from the Tokyo Stock Exchange as early as March.

Pioneer faced financial difficulty due to a surge in development costs for its mainstay operations to make car navigation systems for supply to partner companies under original equipment manufacturer deals.

In December, Pioneer announced a plan to accept the investment from BPEA.

[Copyright The Jiji Press, Ltd.]

Jiji Press