The Wrap, Nikkei: Sony plans to raise $3.6b (440b Yen) through the issuance of new shares and bonds, all a part of its ongoing Mid-Term Corporate Strategy. "Sony plans to use the money from the issuance of new shares to increase its production capacity of stacked CMOS censors in its Devices segment, which it hopes will lead to additional profits. Further, the company wants to use the funds raised by the convertible bonds portion against capital expenditures for the segment and the repayment of debts.
Specifically, Sony aims to use about 188 billion Yen from the common stock offering to fund capital expenditures in the Devices segment, and the remainder to fund R&D there. From the convertible bonds issuance, Sony will use 51 billion Yen to fund capital expenditures on devices, 25 billion Yen to redeem outstanding bonds upon maturity, and the remainder to repay longterm debts."
So the financial restructuring of the Sony group a while ago had a clear purpose. Much easier to issue shares in a growing business with lots of future prospects and use it to pay off some cash guzzeling debt. Would have been harder to do as part of the parent group.
ReplyDelete