Polly Peck Plans to Increase Stake in Sansui
May. 22, 1990
LONDON (AP) _ Polly Peck International PLC said Tuesday it plans to increase its stake in Sansui Electric Co. Ltd. to 70 percent from 51 percent after merging two of its electronics subsidiaries into the Japanese group.
The move is part of a larger planned restructuring under which Polly Peck intends to develop its electronics, foods and leisure businesses as three, largely independent companies.
Polly Peck, which bought a controlling interest in money-losing Sansui last October, said it intends to sell its Asian-based Capetronic Group and Italian- based Imperial Group electronics divisions to Sansui for the equivalent of $524 million.
Sansui, which specializes in audio electronics but also is licensed to manufacture video equipment, plans to finance the purchase through the sale of shares, most of which will be bought by Polly Peck, the company said. Polly Peck had said at the time of its purchase of the controlling stake that it intended to broaden Sansui's product range to include video equipment. Its plans also included putting Sansui at the head of its own electronics operations.
Capetronic is a consumer electronics manufacturer with operations in Taiwan, Hong Kong, Malaysia, China and the U.S.
Imperial is an Italian maker of large-screen color televisions and distributor of televisions, audio products and video cassette recorders.