Panasonic Corp. has resolved to conduct a share exchange in order to make SANYO a wholly owned subsidiary. The share exchange is scheduled to be implemented after the agreement is approved by resolution of an extraordinary general meeting of shareholders of SANYO that is scheduled to be held on March 4, 2011.
Shares of SANYO are scheduled to be delisted as of March 29, 2011, which is prior to the effective date of the share exchange (April 1, 2011).
In the photovoltaic systems business, SANYO is currently promoting an increase in production capacity for its HIT crystalline silicon solar cell by constructing a new plant in order to meet growing demand.
Although Panasonic and SANYO have already shared a management strategy as group companies and have implemented various collaborative measures, including sales of the HIT solar cells through Panasonic's sales channels on a full-fledged scale starting from July 2010, the business environment surrounding the Panasonic Group continues to change dramatically and rapidly, and competition has intensified, Panasonic explains. The company believes it can collaborate more effectively with SANYO by making SANYO a wholly owned subsidiary.
SOURCE: Panasonic
