JAPAN: Sony to become Olympus' top shareholder as the two companies set off on a joint venture in the medical equipment sector

Record ID: 451689

  • Title: JAPAN: Sony to become Olympus' top shareholder as the two companies set off on a joint venture in the medical equipment sector
  • Date: 2nd October 2012
  • Summary: TOKYO, JAPAN (OCTOBER 1, 2012) (REUTERS) SONY CHIEF EXECUTIVE KAZUO HIRAI AND OLYMPUS PRESIDENT HIROYUKI SASA SHAKING HANDS HANDS CLASPED IN HANDSHAKE HIRAI AND SASA POSING FOR MEDIA SIGN IN ENGLISH READING "OLYMPUS" (SOUNDBITE) (Japanese) OLYMPUS PRESIDENT HIROYUKI SASA SAYING" "We have received as new equity the sum of approximately 50 billion yen from Sony. With this, we believe that our capital to asset ratio will improve." SIGN IN ENGLISH READING "SONY" (SOUNDBITE) (Japanese) SONY CHIEF EXECUTIVE KAZUO HIRAI SAYING: "With the Sony and Olympus partnership, it is our hope that together we can make a comeback through innovation, and provide high quality medical equipment for people around the world." SONY AND OLYMPUS JOINT MEDIA CONFERENCE AND PRESENTATION SONY AND OLYMPUS JOINT MEDIA CONFERENCE PANEL (SOUNDBITE) (Japanese) SONY CHIEF EXECUTIVE KAZUO HIRAI SAYING: "With Olympus' high level of expertise, together with our ideas, knowledge and developed infrastructure, we can work together pooling these resources and move towards the best results, and for both sides we can alleviate the risks involved." SONY AND OLYMPUS JOINT MEDIA CONFERENCE AND PRESENTATION HIRAI SMILING FOR PHOTOGRAPHER HIRAI AND SASA BOWING AND EXITING STAGE
  • Embargoed: 17th October 2012 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Business,Health,Industry,Technology
  • Reuters ID: LVA95KTM2HK1KPQ4N0EZ9HEJGMMB
  • Story Text: Sony Corp on Monday (October 1) explained its plans after paying 50 billion yen ($643.5 million) to become the biggest shareholder in Olympus Corp and establish a company with the cash-strapped Japanese camera and endoscope maker to develop medical equipment.
    In a widely flagged deal, Sony said that it will hold an 11.46 percent stake after buying new shares issued by Olympus.
    "We have received as new equity the sum of approximately 50 billion yen from Sony. With this, we believe that our capital to asset ratio will improve," Olympus president Hiroyuki Sasa said.
    "With the Sony and Olympus partnership, it is our hope that together we can make a comeback through innovation, and provide high quality medical equipment for people around the world," Sony Chief Executive Kazuo Hirai added.
    The two companies said they would also look for ways to co-operate in digital cameras.
    Sony wants to nurture new businesses as it retreats from money-losing television manufacturing, while Olympus needs cash to fix its depleted finances after an accounting scandal forced it to re-state several years of earnings.
    "With Olympus' high level of expertise, together with our ideas, knowledge and developed infrastructure, we can work together pooling these resources and move towards the best results, and for both sides we can alleviate the risks involved," Hirai said.
    In selecting Sony as a partner, Olympus rejected offers from medical device maker Terumo Corp and camera maker Fujifilm Holdings Corp.
    Those two companies, which compete more directly with Olympus, were proposing closer ties than Sony.
    On Monday, Olympus Corp shares moved up 1 percent, while Sony added 0.5 percent on the news of the joint venture.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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