Sony Corp announced yesterday that it would buy out its unit Sony Financial Holdings, of which it owns about 65%. The financial holding company has a bank as well as life and casualty insurers under its umbrella.
Sony said it would spend $3.7bn to make the banking and insurance unit a wholly owned subsidiary. Sony, which owns about 65% of the financial unit, plans to buy the remaining shares through a tender offer which will close on 13 July.
Sony said that upon shareholders’ approval later this year, the company name will become Sony Group Corp, effective 1 April 2021.
The Japanese electronics and entertainment group intends to combine its artificial intelligence and other technologies with the expertise of Sony Financial, according to a report by Nikkei Asian Review.
Sony technology is likely to prove useful in future financial services, such as the FinTech area, Sony said, providing “synergies”. It will also enhance profitability, it said.
“With heightening geopolitical risks, we thought it would be best to make this move. We also believe it will lead to long-term improvement of corporate value,” Sony said.