Pioneer Corporation announced it will become a wholly-owned subsidiary of Baring Private Equity Asia, based in Hong Kong. It will delist its shares and cut about 15 percent of its workforce, which stood at 17,000 employees earlier this year.
According to the Nikkei Asian Review, a change in Pioneer’s corporate management is also expected and all of Pioneer’s current board members, apart from President Koichi Moriya and two outside directors are to be replaced by Baring.
Baring will spend the equivalent of about $904 million on the purchase, including a $680 million investment in Pioneer and a $220 million cash offer to Pioneer shareholders.
A statement from Moriya said, “After deep discussions between both parties, we concluded that it would be best to take Pioneer private. This is because we recognized that to ensure business continuity and return Pioneer to growth in the medium- and long-term, it is vital to swiftly overhaul our organizational structure and review our business portfolio. We also recognized that, given the challenge of achieving near-term profitability, taking the company private represents the best option for Pioneer.”
He added, “My mission is to help revitalize Pioneer as quickly as possible and return the Company to a position where it can deliver products and services that delight all of our customers….[Baring Private Equity Asia] (BPEA) sees great potential in Pioneer’s innovative technology, well-established brands and people, and shares our vision for the future of our Company.”
Moriya said, “Despite the challenging situation we face, I firmly believe that this partnership with BPEA and the investment it brings will usher in a bright new future for a revitalized Pioneer.”
