Panasonic seeks to exit Sanyo-brand TV business, sources say

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Panasonic [6752:JP], a Japan-listed manufacturer of electronics products, plans to sell its Sanyo-branded TV business, according to a source familiar with the situation and a person with knowledge of the matter.

The Osaka-based company held a beauty parade this summer to select a sell-side advisor for the sale of the TV business owned by Sanyo Electric, the source said.

Sanyo is still manufacturing TVs at its plants in Mexico as well as China for a sale under the Sanyo brand in the US (largely through Wal-Mart) and China, the person familiar said. This business clearly has no synergies with Panasonic, he said, adding that it would welcome potential buyer approaches to this end.

The Sanyo TV business in the US and China has approximate revenues of USD 1bn, according to the source.

Panasonic was previously in talks with a Chinese strategic, presumably Haier, to which Panasonic had previously sold its white goods business, the source noted. The low-end TV business is not considered overly attractive for many players, he said. However, the business could still attract some Chinese players as they could capitalize on Panasonic’s strong branding, he added.

A Japan-based sector banker also echoed this view. If Chinese strategic buyers are looking to build a significant presence in the African market, low-end and less-pricey TVs would be enough to attract consumers there, he commented.

A spokesperson at Panasonic declined to comment.

This news service reported in June that Panasonic was previously looking to sell subsidiaries related to its television business, such as TV panels and related parts.

Panasonic posted revenues of JPY 3.6tn and a net loss of JPY 685bn for the first half ended September 2012, according to its financial report. This compares to JPY 4trn in sales and JPY 136bn in net losses a year earlier.

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