Sanyo Sells Handset Retail Division

According to this report on WSJ Sanyo said it would sell their retail sales division to Telepark for 4.8 billion yen ($41.6 million). Sanyo had been reluctant to sell off businesses but Goldman Sachs and other investors that last year funded a 300 billion yen bailout have put on the pressure, resulting in management changes and a new strategy. This exit decision was revealed in July however the closing price is well below previous estimates.

The selloff of the mobile-phone sales unit, which accounted for less than 2% of Sanyo’s total revenue last year, isn’t a major move. But the deal is the latest sign that the company’s noncore assets are up for grabs. Sanyo aims for a group net profit of 20 billion yen, its first in four years, on sales of 2.23 trillion yen this fiscal year through March. That includes proceeds from the May sale of its stake in Sanyo Electric Credit Co. to General Electric Co.

According to the article President Seiichiro Sano has said that only the core rechargeable-battery (representing 40% of global mobile phone market share) and solar-power operations are untouchable.