Sanyo offloads cellphone sales and distribution biz: Handset manufacturing business remains up for grabs

Amid rumors of suitors for its handset manufacturing business, Sanyo Electric Co. Ltd. has sold its mobile-phone sales and distribution unit in a deal reportedly worth up to $85 million.
Japanese handset distributor Telepark Corp. confirmed that it purchased Sanyo’s mobile phone sales and distribution unit, Telecom Sanyo Co. Ltd., in an announcement Friday.
“We have decided to acquire shares of Telecom Sanyo in order to comprehensively improve our corporate value,” Telepark wrote in an announcement on the deal.
Last week, Japanese media reported that Kyocera Wireless Corp. was in talks to purchase Sanyo’s cellphone manufacturing business in a deal reportedly valued at $435 million, although neither company has announced an official transaction. Sanyo has been selling off divisions of its non-core business as part of its restructuring.
Sanyo noted the rumors in discussing its deal with Telepark.
“Please note that reports in the media today that Sanyo would sell its entire mobile phone handset business have no connection whatsoever to the disclosure today concerning the sale of Telecom Sanyo Co. Ltd. Regarding the mobile phone handset business (excluding the mobile phone sales agents), Sanyo is considering all possibilities for development and growth,” the company wrote.
“These media reports were not based upon an official announcement by Sanyo and it is not a fact that Sanyo has made a decision to sell this business. When Sanyo deems it necessary to publicly disclose the facts surrounding business decisions, it will do so promptly.”
Telecom Sanyo sells handsets made by Sanyo and other cellphone manufacturers, counts 662 employees on its staff and reported net sales of $333.9 million in the fiscal year ending March 2007, Telepark said in the announcement.