Pioneer gains $540 million in funding from Hong Kong’s Baring Private Equity

Shares in Pioneer dropped more than 4 percent in morning trade. At the close of trade on Tuesday, the company had a market capitalisation of around 49 billion yen ($440 million).

By: Reuters | Tokyo | Published: September 12, 2018 8:11:56 am
Pioneer gains 0 million in funding from Hong Kong's Baring Private Equity Pioneer Corp’s logo is pictured at the 45th Tokyo Motor Show in Tokyo, Japan October 27, 2017. REUTERS/Kim Kyung-Hoon/File Photo

Japan’s struggling Pioneer Corp on Wednesday said it had secured up to 60 billion yen ($540 million) in funding from Hong Kong-based fund manager Baring Private Equity Asia (BPEA).

The consumer electronics maker said in a statement it would issue around 50 billion to 60 billion yen worth of stock to BPEA by the end of December. It will receive 25 billion yen in a bridge loan on Sept. 18 which would be later paid back when the stock is issued.

Shares in Pioneer dropped more than 4 percent in morning trade. At the close of trade on Tuesday, the company had a market capitalisation of around 49 billion yen ($440 million).

Pioneer, which produces products ranging from audio systems and speakers for home and vehicle use to computer storage systems, is facing a repayment deadline for bank loans this month.

The Nikkei business daily reported on Tuesday that it has been strapped for cash as its automotive GPS business struggles.

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement