Published on June 24th, 2014 | by The GC Team0
Onkyo announces capital/business alliance in Home AV business
Onkyo Corporation has announced that it has entered into a basic agreement with Baring Private Equity Asia to commence discussions to integrate Pioneer Home Entertainment into a Baring/Onkyo entity.
A portion of shares in Pioneer Home Electronics Corporation (PHE), a wholly-owned subsidiary of Pioneer Corporation, will be transferred to Baring and Onkyo, after which Baring will have 51% stake in PHE. The remaining 49% will be determined in consultation between the related parties.
Pioneer and Onkyo said they will make an effort to increase competitiveness in the Home AV market by capitalising on the resources of the two companies, such as strong brand power and superior technologies. “The capital participation of Baring will maximise synergies including business expansion,” the companies said in a statement.
Pioneer and Onkyo will retain their existing brands.