Panasonic sells part of its stakes in Toyota and Honda to bolster finances

Electronics major held cross-shareholding arrangements in 228 firms

Panasonic sold a portion of its shareholdings in various companies worth USD1 billion during the fiscal year that ended in March, using the proceeds to pay down interest-bearing debt, reports the Nikkei financial daily. The electronics major held cross-shareholding arrangements in 228 firms – mostly its own customers and suppliers – as of the end of March. Panasonic gained JPY30 billion (USD308 million) from the sales, which included portions of its 0.8% stake in Toyota (roughly 27.39 million shares), a stake of around 0.6% in Honda (11.27 million shares), and stakes in several dozen other companies including TDK, Nippon Steel, and Sumitomo Metal Corporation. Panasonic said it will consider trimming its holdings further through negotiations with cross-shareholding partners.