|Bid||7.40 x 40000|
|Ask||7.55 x 40000|
|Day's Range||7.35 - 7.35|
|52 Week Range||7.05 - 9.15|
|Beta (5Y Monthly)||1.01|
|PE Ratio (TTM)||9.18|
|Forward Dividend & Yield||0.42 (5.71%)|
|Ex-Dividend Date||Mar 30, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Sony Corp. said it intends to take full control of its finance unit for about 395.5 billion yen ($3.7 billion), buying out one of its most lucrative businesses to inject more stability into a largely electronics and entertainment-focused operation.The Japanese giant will offer 2,600 yen a share for the part of Sony Financial Holdings Inc. it doesn’t already own, it said in a statement Tuesday. That’s a premium of about 26% to Monday’s close. Shares in the finance unit surged 19% Tuesday, while Sony itself gained more than 3%.Sony last week warned that operating profit could fall 30% or more this fiscal year because of the coronavirus pandemic’s impact on production and consumption. The financial services business, one of its most profitable, had seen a deterioration because its sales people can’t go out to pitch customers on insurance and other products, it said. The difficulty in projecting future performance for that unit affected Sony’s ability to give a companywide forecast for the year.But the mainly Japanese-focused finance unit could help offset a wider operation vulnerable to global shocks, including an image sensor unit grappling with U.S.-Chinese trade tensions. Once wholly owned and controlled, the business could help raise the parent’s overall profit by 40 billion yen to 50 billion yen annually starting next fiscal year, the company said.“The financial unit is based in Japan, and its profit stability will benefit Sony, as a global company, amid geopolitical risks,” Chief Executive Officer Kenichiro Yoshida told investors during Sony’s annual strategy briefing Tuesday. “The financial business is as important as our electronics and entertainment units, and we see long-term growth potential in the business.”Read more: Sony Slides After Warning of 30% Profit Drop in Fiscal YearYoshida has overhauled the technology icon in recent years to focus on franchises such as sensors for smartphone cameras and the PlayStation games business. Activist investor Dan Loeb has pushed for a sale of the finance operation but Yoshida has said the division, which sells insurance policies among other services, is integral to enhancing the company’s value.The Tokyo-based company, also a major Hollywood entertainment producer, has been diversifying into banking since 2001. Sony Financial itself was set up in 2004 and at one point was expected to bring in the majority of the Japanese conglomerate’s operating profit.“The move could help stabilize Sony’s profit even when electronics businesses are in trouble,” Morningstar Research analyst Kazunori Ito said. But “there’s no synergy between the domestic financial units and other arms.Shares in potential candidates to take Sony Financial’s spot on the benchmark Nikkei 225 index climbed Tuesday after the report, including Japan Post Bank Co. and Seven Bank Ltd.(Updates with CEO’s comments from the fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Japan Post Bank Co. plunged by a record in Tokyo on Monday after it forecast profit that missed analysts’ expectations, failed to give guidance on dividend payments, and booked paper losses on some investments.The shares dropped as much as 15%, the biggest intraday decline since the company was listed in 2015 as part of a privatization process. The postal bank expects net income will fall about 27% to 200 billion yen ($1.9 billion) in the year ending March 2021, it said Friday. Shares of the parent company also fell, sliding as much as 10%.“This is a negative surprise,” Masahiko Sato, an analyst at SMBC Nikko Securities Inc., wrote in a note to clients. He said most market participants had expected profit would be around 280 billion yen this year, which is line with the bank’s own midterm target.The outlook for lower profit is likely to raise concerns about whether the bank can keep its dividend payment, said Rie Nishihara, an analyst at JPMorgan Chase & Co. “Even if the bank can achieve the net profit guidance, the payout ratio will rise to around 95% from 68.5% last year,” she said.Read more on Japan Post Bank’s CLO plans after paper lossPaper losses on the bank’s securities portfolio were also a concern, according to Nishihara. Japan Post Bank, the nation’s biggest holder of domestic savings, has been increasing investments abroad to make up for rock-bottom interest rates at home, making it more vulnerable to global financial-market moves.The company reported 121.9 billion yen in unrealized losses on overseas collateralized loan obligations last quarter amid the coronavirus-fueled market turmoil. Still, it will keep adding to its CLO holdings, Senior Managing Executive Officer Hiroichi Shishimi said.(Updates with comments from analysts in the third and fourth paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.