TOKYO (dpa-AFX) - Sony Corp (SNE, SON.L) said that, as of March 30, 2012, it intends to transfer rights and obligations relating to its small- and medium-sized LCD device businesses to Sony Mobile Display Corp. or 'SMD', a wholly-owned unit of Sony, by an 'absorption-type company split'. This reorganization would take place in association with the integration of small- and medium-sized display businesses announced by Sony, Innovation Network Corporation of Japan or 'INCJ', Toshiba Corp. and Hitachi, Ltd. jointly on November 15, 2011.
This reorganization within Sony is planned to be conducted by way of a 'company split' under the Companies Act of Japan. The purposes of the company split is to transfer Sony's business relating to the planning, development and sales of small- and medium-sized LCD devices to SMD in advance of the transfer of all of the issued shares of SMD from Sony to Japan Display Inc., which share transfer forms a part of the Business Integration.
The company said this is an absorption-type company split between Sony and SMD. Because Sony owns all shares of SMD, there would be no issuance of new shares or cash payment upon the contemplated company split.
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© 2012 AFX News
