Panasonic to launch tender offer for remaining Sanyo shares

Panasonic will pay Yen 138 per Sanyo share and Yen 1,110 per Panasonic Electric Works share, representing a premium of 21 percent and 22 percent respectively over the average closing prices in the past month. As a result, Panasonic is expected to spend around Yen 422 billion (Euro 3.72 billion/US-$ 4.86 billion) for Sanyo and approximately Yen 396 billion (Euro 3.5 billion/US-$ 4.57 billion) for Panasonic Electric Works.

Panasonic said it expects the transaction to strengthen the company’s “green” energy business. Sanyo is a leading supplier of solar modules and rechargable batteries, while Panasonic Electric Works has a proven expertise in home equipment, lighting technologies and automation control. Business operations of the three companies are scheduled to be reorganized by January 2012. Panasonic said that all product offerings will be gathered under the Panasonic brand name, except for a limited number products that are sold in selected markets.