TOKYO Matsushita Electric will invite bids on March 9 for the sale of its subsidiary, Victor Company of Japan, Ltd. (JVC), according to reports here.
The financial daily Nikkei reported on Saturday (March 3) that companies expected to bid for JVC would include Texas Pacific Group and Cerberus Capital Management.
The sale of JVC has been long rumored. Fumio Ohtsubo, president of Matsushita, announced last January that Matsushtia's new mid-term plan was to spin off JVC, but declined at the time to elaborate.
Matsushita has shown a sharp recovery from the record loss of ¥431 billion ($3.7 billion) in fiscal 2001, but its 52-percent ownership stake in JVC has dragged down revenues.
Last February, JVC revised downward it its fiscal-year financial forecast. Though the company had expected a 3 percent jump in sales and ¥2 billion ($17 million) in profit at the beginning of the term, the revised forecast pushed down the sales to a 3-percent drop from the year before and zero profit.
Sources close to Matsushita said it has been approaching several suitors about the sale of JVC.
Kenwood Corp. was considered a possible buyer along with overseas investment funds.