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Sony To Embark On Around $4.7 Billion In Fundraising

Sony To Embark On Around $4.7 Billion In FundraisingSony stated it expects to raise approximately 321 billion yen through its share offering and approximately 119 billion yen from the offering of convertible bonds.

“Sony Corporation plans to apply the funds raised by this issuance of new shares to expenditures for increasing the production capacity of, and research and development for, stacked CMOS image sensors in the devices segment in order to further enhance profitability,” Sony stated.

“In addition, Sony Corporation plans to apply the funds raised by the convertible bonds to capital expenditures for the devices segment and repayment of indebtedness.”

In February, Sony unveiled its “mid-term strategy” for the next three years, aiming for a consolidated operating profit of more than 500 billion yen by the 2017 financial year, stating it would position its devices, game and network services, pictures, and music segments to drive profit growth.

At the time, Sony stated it would aim for further growth in CMOS image sensors, investing to increase production capacity, and enhancing research and development.

Unveiling its fundraising plans, Sony stated it is progressing with its “profit generation and investment for growth” phase, which it stated is the current focus of its strategy, following the structural reform phase that was its focus through the fiscal year ended March 31, 2015.

Upon release of its 2015 fiscal year results, Sony forecast its devices segment would deliver 16.5 per cent growth in the 2016 fiscal year, stating its overall sales were expected to increase primarily due to a significant increase in sales of image sensors.

Sony shares trading on the Tokyo Stock Exchange ended the day down 8.26 per cent following announcement of the fundraising.