Olympus, Sony to finalize capital tie-up deal this week
Selasa, 25 September 2012 13:19
(TOKYO-Kyodo) Scandal-hit Olympus Corp. will finalize an agreement by the end of this week to form a capital and business tie-up with Sony Corp., sources familiar with the matter said Monday.
Under the deal, Sony will become Olympus's leading shareholder by acquiring a stake of more than 10 percent in the Japanese maker of medical equipment and cameras for about 50 billion yen, the sources said.
Olympus, whose financial standing has been hit hard by an investment loss coverup scandal, and Sony are planning to set up a company to jointly develop and manufacture endoscopes and other medical devices, according to the sources.
The tie-up agreement will be formally approved at their respective board meetings within this week, the sources said.
Olympus is also hoping to boost cooperation with Sony in its money-losing imaging business such as digital cameras. The sources said a Sony executive is expected to become one of the Olympus board members.
As of the end of June, Olympus's capital adequacy ratio had been reduced to 2.2 percent due to a strong yen and the coverup scandal in which it admitted to hiding 117.7 billion yen in investment losses dating back to the 1990s.
With the investment from Sony, Olympus aims to prop up its capital base and rebuild its business by cutting its workforce and enhancing its mainline medical business.
The competition to form an alliance with Olympus was fierce. Medical equipment maker Terumo Corp. had proposed management integration, while Fujifilm Holdings Corp. and Panasonic Corp. had also been eager to join hands with Olympus.
To rebuild its digital camera business, Olympus has judged that it would be more effective to team up with Sony, which has strength in the imaging business.
Following the slump in its business performance due to sluggish television sales, Sony sees the medical business as one area of potential growth and has shown strong interest in allying with Olympus, which has an overwhelming global share in gastrointestinal endoscopes.