NEC Corp. of Japan said that it will sell some shareholdings in three affiliates, including Toyo Communication Equipment Co., for funds to cut a huge restructuring-related loss expected for the curren…
NEC Corp. of Japan said that it will sell some shareholdings in three affiliates, including Toyo Communication Equipment Co., for funds to cut a huge restructuring-related loss expected for the current business year. NEC will sell part of its holdings in Toyo Communication, Ando Electric Co. and Nippon Electric Glass Co. before the March 31 end of the year. The major computer maker expects a profit of around 35 billion yen from the transactions. It has already reflected the profit in the earnings projection announced in October last year. NEC hopes to sell the shares to institutional investors that will hold onto them, company officials said. The share sale will reduce NEC“s stakes in Toyo Communication Equipment to 20% from 39%, Ando Electric to 35% from 50% and Nippon Electric Glass to 35% from 42.1%. NEC has announced a plan to sell its headquarters building in Tokyo through securitization and book a profit of about 60 billion yen. Even the sale of the shareholdings and the building offset only half the extraordinary loss of about 180 billion yen expected for the current year. The company plans to sell more securities holdings to cover the loss, the officials said.