Panasonic plans to sell stake in autos business to Apollo Global funds (updated)

Panasonic Holdings

17/11/2023 05:56

(Adds details from statement in paragraphs 3, 4)
       TOKYO, Nov 17 (Reuters) - Japan's Panasonic Holdings
 6752.T  said on Friday it plans to sell a stake in its
automotive systems business to funds managed by U.S. private
equity firm Apollo Global Management, and has signed a
memorandum of understanding with an Apollo affiliate.
    Shares of Panasonic surged on the news, gaining 5.3% in
Tokyo trade as at 0550 GMT. Panasonic also said it could
potentially list the business in the future.
    "The parties will continue discussions on an exclusive basis
with the intention of finalising the details of the agreement by
March 31, 2024," Panasonic said in a press release.
    Continued investment in the automotive systems business
would be necessary to achieve sustained growth for the company
amid a rapid shift to electric cars and changes to vehicle
architecture, Panasonic said.

 (Reporting by Daniel Leussink; Editing by David Dolan and
Christopher Cushing)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))