TOKYO (AP) — Japan's troubled electronics maker Sanyo Electric Co. will not sell its semiconductor operations to another company — a key component of its recovery plans — due to tight credit in the aftermath of the U.S. subprime loan crisis, it said Wednesday.
Sanyo long had been looking to sell the business and was in the final stages of a sale, but the company said it now will look to turn around the division itself.
Advantage Partners, one of the investment funds involved in the bidding, was set to sign the deal but was unable to come up with the capital required, the Nikkei reported Wednesday.
The sale of Sanyo's money-losing chip operations was seen as a major step in the company's turnaround, and market investors slammed the cancellation. Sanyo's shares fell 6.1 percent Wednesday in Tokyo.
An Advantage spokeswoman said the company does not comment on specific deals as a matter of policy.
Sanyo and Japanese rival Kyocera Corp. said earlier this month they are in final negotiations over the sale of Sanyo's mobile phone operations.
Sanyo already has sold its small mobile phone retail business and dumped its remaining holdings in Sanyo Electric Credit Co.
Sanyo is trying to book a group net profit this fiscal year through March for the first time in four years.
Sanyo, whose businesses are widespread and include TVs and household appliances, has said it sees its solar and battery operations as its core business.