Sony Corp. to Raise $3.6B Through Stock and Bond Issue, Share Price Plunges
The entertainment to electronics conglomerate will raise funds in Japanese and international markets to invest in growth business sectors.
Sony Corp. is to raise around $3.6 billion (￥440 billion) through an issue of new stocks and bonds on Japanese and international capital markets in order to strengthen its financial base and invest in growth business sectors, the company announced Tuesday.
The entertainment to electronics conglomerate is to sell up to 92 million new shares in Japan and overseas, as well as approximately $1 billion (￥120 billion) worth of bonds in Japan only. The stock offering is set for Aug. 17, with the exact price to be determined closer to then.
Thirty-two million shares will be placed in Japan and 55.2 million shares internationally, with an extra 4.8 million allocated in case the offering is over-subscribed.
Sony said the funds raised from the new stocks will be invested in production, research and development of image sensors, which are used in smartphones and other devices and have been a profitable segment for the company recently. Sony also plans to pay down debt with the money raised from the bond issue.
Sony stock was down more than 8 percent on the Tokyo market at ￥3,460 ($28.25) shortly after the announcement.