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Pioneer bought by Hong-Kong fund

AFP  |  Tokyo 

Japanese firm said Friday it will become a wholly owned unit of a Hong Kong-based fund to rebuild itself in a deal worth $904 million.

Pioneer, known for its as well as car systems, said has agreed on a 102-billion-yen ($904 million) plan to revive the struggling Tokyo-based company.

Baring will make a 77-billion-yen investment in Pioneer, along with a 25-billion-yen offer to buy existing shares from shareholders.

"These steps will secure working capital vital for Pioneer's business operations," a joint statement from the two firms said.

"Once privatised, a range of significant changes will be made to revitalise Pioneer, including reviews of the company's business lines as well as structural reforms and an overhaul of the management team," it said.

The deal is subject to approvals from shareholders as well as regulatory agencies.

Pioneer, this year, expanded from the 1960s through the 1990s with popular as well as

It was among the leading companies to promote discs and plasma televisions.

But has struggled in recent years with deep losses and falling sales as the audio and automobile industries go through rapid changes.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 14:45 IST