TOKYO, Nov 20 (Bernama-dpa) -- Japanese electronics giant Panasonic Holdings Corp has signed a deal to sell a stake in its automotive systems unit, the company announced on Monday, reported dpa news.
Panasonic Holdings Corp signed a memorandum of understanding with an affiliate of alternative asset manager Apollo Global Management Inc regarding a partnership in Panasonic Automotive Systems Corp (PAS).
The companies will continue discussions on an exclusive basis with the intention of finalising the details of the agreement by March 31, 2024.
As per the basic agreement to become strategic partners in PAS, the company noted that if the deal based on this memorandum is completed, funds that are managed by Apollo will acquire a portion of Panasonic's ownership of PAS.
At present, Panasonic is the sole shareholder, and PAS is expected to become an equity-method affiliate of Panasonic.
PAS was established in 2022 as a business entity responsible for Panasonic's Automotive business. It provides advanced technologies such as infotainment systems, to automakers. The company has 61 locations around the world and about 30,000 employees and generated annual sales of 1.3 trillion yen (US$8.74 billion).
According to Panasonic, there is a rapid shift to electric cars and a significant change to vehicle architecture, and continued investment will be necessary to achieve sustained growth for PAS, especially in software development and electrification, which continue to evolve and advance.
Through the partnership, PAS is expected to gain access to large and new financing opportunities, including for strengthening the development of growth businesses.
The company further expects that PAS, through a potential future public listing, will realise continued growth as a major supplier of automotive infotainment and connectivity system solutions.
In Japan, Panasonic shares closed Monday's trading at 10.02 yen, up 7.17 per cent.
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