Struggling Japanese electronics maker Sanyo Electric is planning to raise YEN 300 billion (US$2.6 billion) to finance its restructuring efforts through a share allocation, it said Wednesday.
The company plans to issue the shares by February and will use the money toward its goals set out in a restructuring plan announced earlier this year.
The plan calls for Sanyo to concentrate its development work on environmental and environmentally friendly technologies and products. It will also see the company cut its worldwide workforce of 96,000 people by 15 percent, or 14,400 people, over three years and see the company sell 20 percent of the 2 million square meters of land its factories occupy in Japan.
Sanyo will issue YEN 125 billion of new shares to both Daiwa SMBC Principal Investments and the Goldman Sachs Group and YEN 50 billion in new shares to Sumitomo Mitsui Banking Corp.
The restructuring was sparked by worsening business conditions for the Osaka-based company.
During the first half of the current financial year, the period from April to September, Sanyo reported a net loss of YEN 142.5 billion against a net profit of YEN 3.4 billion in the same period last year. It had been predicting a full-year net loss of YEN 140 billion but revised this to YEN 233 billion in light of the poor first half.
Revenue during the first half fell 6 percent to YEN 1.2 trillion, it said. For the full year, it expects revenue of YEN 2.4 trillion, down slightly compared to last year.