Cash-strapped Japanese companies have recently turned to real estate to cut costs and improve cash-flow. Panasonic Corp., Sony Corp., and Sharp Corp., are selling buildings and businesses in what is considered a huge garage sale, that could raise $3 billion combined.
Hideaki Kawai, Panasonic?s chief financial offer said that the company plans to raise $1.34 billion from offloading property and shares in other companies in Japan by the end of March. Kawai added that the company will sell more assets in the year beginning April if cashflow decreases below 200 billion yen.
Meanwhile, fixed assets of Sony, Panasonic and Sharp totaled around $42 billion while their combined market value is $24 billion. Analysts say that these companies have been downgraded by credit rating agencies, which made it more difficult to raise money on capital markets, and made asset sales more urgent.
According to Alvin Lim, an analyst at Fitch Ratings in Seoul, the companies? decision to sell assets is a good one, in terms of their credit ratings. It will lower fixed costs and help the companies reduce capex requirements and will eventually help improve operating margins and cashflow.
Panasonic plans to give more focus on its batteries and auto parts business while Sony is doubling down on mobile, gaming and cameras. Sharp also announced that they will focus on display screens, even looking to work with Hon Hai Precision Industry and Qualcomm Inc.
Sony has already made its move to real estate, to raise money. The company is looking at possible sale of its 37-story headquarters in New York City, which when sold, could raise $1 billion. Sharp, which plans to work with Qualcomm has already started well; Qualcomm has agreed to buy 5% stake in Sharp. While Hon Hai agreed to buy shares, the company didn?t give details about how much the company is willing to take. This being a critical step, Lim adds that the big three should take whatever they can get so that they can get back on their feet through this fiscal period to remain afloat in the market.
Original Article: GulfNewsPhoto Credits: Wiiii via Flickr Creative Commons?Tokyo Apartments For Sale | Tokyo Apartments For Rent | Real Estate Japan
Source: http://www.realestate.co.jp/2012/12/18/japanese-companies-turn-to-real-estate-to-improve-cashflow/
Endeavor shaun white carolina panthers amanda bynes Revolution TV Show bankofamerica revolution
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন