TOKYO (Reuters) - Matsushita Electric Industrial Co. Ltd. (6752.T) is in the final stages of talks with TPG to reinvest in JVC 6792.T after selling its 52.4 percent stake in the struggling electronics maker to the U.S. private equity firm, the Asahi newspaper said.
The report came after sources familiar with the matter said in March that Panasonic maker Matsushita was set to choose TPG as preferred bidder for loss-making Victor Co. of Japan Ltd. (JVC).
TPG has decided Matsushita’s support is indispensable for JVC’s turnaround, and asked the world’s largest consumer electronics maker for its cooperation, the newspaper said.
One likely scenario is that Matsushita sells its JVC stake to TPG, and, after the transaction, the Osaka-based company buys JVC-issued preferred shares to own less than 20 percent of the company, the paper said.
The final agreement will likely be reached by the end of the month, and JVC President Masahiko Terada is expected to step down as part of the deal, it said.
Although JVC enjoys brisk demand for hard disk drive-equipped camcorders, its rear-projection television sales have been hit by sharp falls in plasma TV prices.