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Panasonic to sell birthplace of its TV business: report

Panasonic to sell birthplace of its TV business: report
Sunday, June 22, 2014
AFP

TOKYO — Japan’s electronics giant Panasonic will sell the plant where it first got into the television business half a century ago as it shifts away from the money-losing division, a report said Saturday.

The company plans to sell 60 percent of the plant’s 120,000-square meter site in Ibaraki, near the western city of Osaka, to Japan’s major homebuilder Daiwa House by early next year, the business daily Nikkei said.

The price tag is estimated at 10 billion yen (US$97 million).

Daiwa House is expected to build a large-scale logistics facility at the site and lease it to parcel delivery company Yamato Holdings Co., Nikkei said.

Panasonic is also considering selling the remaining 40 percent of the site to the municipal administration of Ibaraki and its homebuilding unit, PanaHome, Nikkei said. The property could then be retrofitted for public facilities and residential use.

No officials were immediately available at Panasonic’s head office to confirm the report.

The plant started producing cathode ray tube sets in 1958, and helped turn Matsushita Electric Industrial — as Panasonic was then known — into a global electronics company.

In 2001, Panasonic converted the facility into a plasma TV plant handling everything from making panels to assembling the sets. The company shifted most of the operations in 2005 to a new plant in nearby Amagasaki.

Panasonic said in April it posted its first annual net profit in three years and reversed a huge loss suffered in the previous 12 months as it presses on with a sweeping restructuring.

The company, along with rivals Sony and Sharp, has struggled in recent years, largely because of huge losses in their television units — but a sharply weaker yen over the past year has helped boost their bottom line.

These firms have stopped production of plasma television panels as they continued efforts to improve their battered balance sheets.

 

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About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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