Sanyo Electric Co. announced today that it will sell its mobile phone division to Kyocera Corp. The two companies haven’t reached a final price for the deal which is expected to be closed by April 1 of this year. The value of the mobile division is estimated to be worth $374 million (40 billion yen). With occurred debt, the deal should be worth $467 million (50 billion yen).
News of the sale comes months after Goldman Sachs and other investors saved Sanyo in a $2.8 billion (300 billion yen) bailout.
Sanyo said in a statement. “In order to meet the best interest of the business and its stockholders, Sanyo has … concluded that a transfer of the business to Kyocera would be the ideal solution.”
Under the agreement, 2,000 employees in Sanyo’s mobile phone division will go to work for Kyocera. Kyocera plans to continue to use the Sanyo brand on handsets at home and overseas. Sanyo started manufacturing handsets in 1994 and has supplied several mobile phone carriers in and outside the country.
Sanyo builds TVs and other home appliances but plans to focus on its solar and battery divisions. The company hopes restructuring will allow Sanyo to post its first net profit in four years.