Sony Financial IPO Talks Heat Up; PS3 Launch Date Set for Europe

The Wall Street Journal reports "speculation is growing" that Sony will sell shares of its financial arm, Sony Financial Holdings, as early as April, in a long-awaited IPO that could reach ¥400b ($3.3b). Bloomberg says it may have a market value of ¥960b ($8b) noting Sony's corporate rules require it keep at least a 50% stake. This could be one of the largest IPOs in Japan this year, similar in size to last year's ¥380b Aozora Bank IPO, the largest in Japan in eight years. It is unclear exactly when the IPO will happen, but Bloomberg reports a Sony spokesman said it could be as early as Apr. 1. The WSJ cites sources who say Nomura Securities and JP Morgan Sec. are the underwriters. The IPO is part of Sony's strategy to focus more on its core electronics businesses. Separately, Sony announced today its PlayStation 3 will launch in Europe and Australasia on Mar. 23 for €599/£425/A$999.95/NZ$1199.95. Initially only the 60GB version will be available based on expected consumer demand. Also, Sony announced Sony Life Insurance Co. will establish a 50/50 JV in Japan with Aegon NV, the second-largest Dutch insurer. Operations are expected to begin early next year pending final agreement and approval. A Japan-based Merrill Lynch analyst responded to the news saying, "It's a growing area and a positive move. Still, it seems the timing is a bit late and I don't get a strong impression from Aegon in this business."
• Sources: WSJ, Bloomberg, Sony press releases [I, II]
• Related commentary: Sony Ericsson Triples Profits in 4Q06, Sony PS2: Top-Selling Game Console During Holidays, Sony Soars on Goldman Upgrade
• Potentially impacted stocks and ETFs: Sony (SNE), Aegon NV (AEG), Nomura Holdings (NMR), JP Morgan (JPM)

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Comments

[WFlorid:]

This was a useful article - is there any follow up on how this IPO is going and what the price will be? How is the valuation relative to other financial companies in Japan? Also, I saw Warren Buffett expressed interest in this operation. Why?

2007 Sep 06 10:11 AM

[WFlorid:]

s

2007 Sep 06 10:13 AM