TOKYO (Reuters) - Pioneer Corp (6773.T) said on Friday it would sell its home audio-visual business to audio equipment maker Onkyo Corp (6628.T), with a Hong Kong-based fund backing out of an initial proposal to take a majority stake.
Pioneer would in turn take a 14.95 percent stake in Onkyo, they said in a statement, adding both brands would remain under the new structure.
Pioneer, Onkyo and Hong Kong fund Baring Private Equity Asia had initially agreed in June to consider an integration of Pioneer’s home AV business with Onkyo, with Baring taking 51 percent of the unit.
The two companies aim to finalize an agreement by the end of October and complete the integration by next March.
Pioneer’s home AV unit makes and sells DVD players, digital photo frames and other equipment. It does not include Pioneer’s disc-jockey business, which sources say it is also seeking to sell and has hired Bank of America Merrill Lynch to handle the deal.
Reporting by Chang-Ran Kim; Editing by Chris Gallagher