Tokyo: Japanese electronics manufacturer Panasonic is studying whether to sell its medical and health products affiliate, one of the historic pillars of the company, so that it can improve its financial position, the Nikkei business daily reported Sunday.
The Osaka-based company currently has numerous offers for its Panasonic Healthcare division, among which are Japanese companies and the US investment fund Kohlberg Kravis Roberts & Co.
The deal could be closed for 100 billion yen (USD 1.05 billion).
Panasonic projects for fiscal 2012, which in Japan concludes March 31, a net loss of 765 billion yen (USD 8.03 billion), which would be its second consecutive year in the red.
Panasonic Healthcare, which specializes in products like blood sugar measurement equipment, hearing aids and assorted medical devices, in 2011 made an operating profit of 8.8 billion yen (USD 92.4 million) on sales of 133.6 billion yen (USD 1.4 billion).
Dragged downward by a fall in sales of televisions, computers and mobile phones and mired in a restructuring process with an estimated cost of 440 billion yen (USD 4.62 billion), the firm announced that, for the first time in 63 years, it would not pay dividends during fiscal 2012.
First Published: Monday, March 18, 2013, 10:50