Pioneer gains $540 million in funding from Hong Kong’s Baring Private Equityhttps://indianexpress.com/article/business/pioneer-gains-540-million-in-funding-from-hong-kongs-baring-private-equity-5351592/

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).

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.

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