TOKYO (Thomson Financial) - Japanese audio equipment makers Victor Co of Japan Ltd (JVC) and Kenwood Corp said they will jointly announce business plans later Tuesday amid reports they have agreed to integrate their car electronics R&D operations prior to a planned integration.
JVC and Kenwood, along with their top shareholders Matsushita Electric Industrial Co and Sparx Group Co, respectively, said they will release a press statement on details of the plans at 4.00 pm (0700 GMT).
The Nikkei business daily reported over the weekend that Kenwood and its main shareholder, Sparx Group, are expected to take a combined 25 percent stake in JVC. JVC will increase its capital by issuing 20 billion yen in new shares to Kenwood and 10 billion yen to Sparx in August, the newspaper said.
The sale will cut Matsushita Electric's stake in JVC to below 40 percent from 52.7 percent currently, according to Nikkei, and that Matsushita intends to unload all shares in JVC at the time of the JVC-Kenwood integration.
(1 US dollar = 120.64 yen)
yumiko.nishitani@thomson.com yun/ms COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
