Sanyo Electric Company (Tokyo) will to raise 300 billion yen (approx. U.S. $2.56 billion) by issuing new shares to Goldman Sachs, Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC, according to media reports. The plan was announced earlier and is expected to be approved by Sanyo's board.
Sanyo needs the cash to help it restructure. As APPLIANCE magazine reported last month, Sanyo reported deep losses for the first half of its current fiscal year and widened its full-year loss forecast at the time.
"We know we really have our backs against the wall," Sanyo President Toshimasa Iue told the media in November. "I would consider it the ultimate sin to let things get any worse than they are. This is our last chance."
Sanyo reorganized top management in June and launched a 3-year plan to restructure the company, including cutting 14,000 employees and selling a fifth of its factory footage.
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