September 12, 2018
Tokyo- Struggling Japanese car electronics maker Pioneer Corp. said Wednesday that it will receive financial assistance from Hong Kong-based investment firm Baring Private Equity Asia.
Pioneer will accept an equity investment of between 50 billion yen and 60 billion yen from BPEA by the end of this year.
The Japanese company will also receive a bridge loan of 25 billion yen from BPEA on Tuesday to help repay debts due late this month.
The investment will make BPEA the largest shareholder of Pioneer. The Japanese company said it will remain public for the time being after the investment.
BPEA is considering acquiring a majority of voting rights in Pioneer, sources familiar with the situation said.
Pioneer will come up with a new business plan as early as November in cooperation with BPEA. The Japanese company will also consider restructuring steps as necessary.
Pioneer has faced financial difficulty due to ballooning product development costs. In a quarterly financial statement released last month, the company noted uncertainty about its ability to continue as a going concern. Jiji Press
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