Potential spin-off: Sony weighs finance arm IPO to fuel investment push

Sony Group is weighing a partial spin-off and separate listing for its financial unit in two to three years, a major decision aimed at bankrolling an investment push in gaming and electronics.

The Tokyo-based company will assess the spin-off plan, which would reverse a $3.7 billion take-private deal concluded in 2020, over the course of this financial year. It would aim to retain just under 20 per cent of Sony Financial Group and sell its shares on a Japanese exchange, the company said in presentation materials accompanying a strategy briefing on Thursday. 

Its shares rose 6.4 per cent in Tokyo, their biggest jump in six months. This week, Sony unveiled plans to buy back up to 2.03 per cent of its shares for as much as $1.5 billion over the next twelve months, helping to trigger a rally.

“Sony’s image sensor and entertainment businesses will need much bigger investment in the future. Meanwhile, you need a strong base for financial services,” Chief Operating Officer Hiroki Totoki said at the briefing. “That’s why we decided to consider using a virtual spinoff — which allows us to keep Sony’s name on the financial service arm while it gains the ability to raise cash independently.”