Sony to sell stake in fin unit to raise $2.5 bn

TOKYO: Sony Corp. plans to raise $2.5 billion (300 billion yen) by selling at least 30 per cent of its financial unit in what is likely to be Japan's largest initial public offering this year, a report said Thursday.

Sony has already made a provisional application to the Tokyo Stock Exchange, which is expected to grant approval after it receives an official request, the Nikkei business daily reported without naming its sources.

Sony Financial Holdings will have a market capitalisation of at least one trillion yen, according to market estimates, with a flotation expected this autumn, the report added.

The iconic Japanese company intends to use the proceeds to bolster its core electronics division, including the development of flat-panel televisions, camcorders and other products, the Nikkei said.

The financial unit serves as a holding company for Sony Life Insurance Co., Sony Assurance Inc. and Sony Bank.

Sony said in a statement in response to the report that it expected to take the unit public at "an appropriate time," but declined to specify the timing or size of the offering.