By Ronnie HaruiPanasonic Holdings' shares rose sharply on Monday, for a second straight session, after it signed a memorandum of understanding to sell a stake in its automotive components subsidiary to an affiliate of Apollo Global Management. Shares were up 5.3% at 1,576.5 yen ($10.54) in morning trade after earlier touching Y1,606.50, its highest intraday level since Oct. 17. If the transaction under the MOU is completed, Apollo will acquire a portion of Panasonic Automotive Systems, which is currently wholly owned by Panasonic. While Panasonic hasn't disclosed the stake to be sold or the sale value, Citi analysts assume a sale of a 50%-80% stake. Panasonic Automotive Systems was set up as a business entity responsible for Panasonic's automotive business, and provides advanced technologies to vehicles in areas such as infotainment systems, the company said.

Source: Wall Street Journal November 20, 2023 03:07 UTC