Sanyo to lose some board control to investors
- — 27 January, 2006 11:40
Struggling Japanese electronics maker Sanyo Electric will give up some management control to a group of outside investors under a plan unveiled late Wednesday.
The company, which is expecting to record a loss of YEN 233 billion (AU$2.66 billion) in the current financial year, had last month announced it will raise YEN 300 billion through the issuance of new shares to a group of three investors. On Wednesday it further detailed the plan, which will see 5 of its 9 board seats occupied by people appointed by the investors.
The three companies pumping money into Sanyo are Daiwa Securities SMBC Principal Investments Co., Goldman Sachs Group and Sumitomo Mitsui Banking.
As part of the shake-up Satoshi Iue, currently an executive director of the company and son of Sanyo-founder Toshio Iue, will step down from the board along with four other directors.
Sanyo will also retire the western-style management titles of CEO (chief executive officer), COO (chief operating officer) and CFO (chief financial officer) and so Tomoyo Nonaka, the woman appointed last year to lead Sanyo's restructuring and revitalization, will lose her CEO title but remain chairman of the company.
All of the appointments are subject to shareholder approval at an extraordinary shareholders' meeting scheduled for Feb. 24.
Sanyo plans to announce its financial results for the last three months of 2005 on Tuesday.