Why Is Sony Taking Over Its Financial Unit for $3.7 Billion?
Sony's (NYSE: SNE) financial unit, Sony Financial Holdings (OTC: SNYFY), was founded 16 years ago to consolidate and expand its life insurance and banking businesses. Sony currently owns a 65% stake in the publicly listed subsidiary, while the rest is split among other shareholders and joint venture partners.
However, Sony recently launched a $3.7 billion tender offer for the remaining 35% of SFH's shares. If the deal closes, SFH will become a wholly owned subsidiary of Sony, and its Tokyo-listed, overseas listed, and OTC shares will be delisted.
Sony calls SFH a "core business that is integral to the long-term growth strategies of the Sony Group." Instead of operating the business "within certain constraints as a listed subsidiary," Sony believes taking full control of the unit will "ensure the implementation of optimized strategies for each business, and to drive further Groupwide synergies."
Source Fool.com
