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.