Hedge fund Third Point calls on Sony to spin off semiconductor unit (updated)
14/06/2019 24:13
(Adds details from letter)
By Svea Herbst-Bayliss
June 13 (Reuters) - Daniel Loeb's activist hedge fund Third
Point LLC called on Sony Corp 6758.T on Thursday to spin off
its semiconductor business, sell off stakes in Sony Financial
and other units, and position itself as a leading global
entertainment company.
This marks the second time in six years that Loeb, one of
the world's most successful activist investors, has targeted the
Japanese company, and the first time he has publicly discussed
his investment and plans for the company. Third Point began
building its stake several months ago and has committed $1.5
billion in capital. urn:newsml:reuters.com:*:nL1N21Q0IS
In a 102-page presentation the firm said Sony's stock was
undervalued in part because of its complex structure, and urged
bold action by management to simplify it.
The semiconductor division is "often treated by investors as
an afterthought" and should be spun off into a Japan-listed
company called Sony Technologies, Loeb said.
While Japan pioneered the semiconductor industry, other
Asian countries have eaten into its market share even as Sony
has "held its own," Loeb told investors in a letter.
"New Sony" would become a creative entertainment leader with
gaming, music, pictures and electronics businesses, he said.
Sony should also consider selling stakes in Sony Financial
Holdings Inc 8729.T , M3 Inc 2413.T , Olympus Corp 7733.T
and Spotify Technology SA SPOT.N , Third Point wrote.
Sony did not immediately respond to a request for comment.
Loeb threw his weight behind Sony Chief Executive Kenichiro
Yoshida, saying he could create a "Stronger Sony" by shifting
his focus to unlocking the value of its assets.
(Reporting by Svea Herbst-Bayliss in New York;
Editing by Sandra Maler and Richard Chang)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))