Posted Mon Apr 15, 2013 at 09:00 AM PDT by Brian Hoss
Pioneer's largest shareholder at 9.2 percent, Sharp continues to try to stay above water.
Sharp is planning to sell its 30 million shares of Pioneer in a move that echoes options that Sharp explored this past fall. In 2012, Sharp finally had to restructure its entire operation in order to begin addressing the billions of dollars of debt the company has accrued. While the company has accepted bailout funds, new investment, and sold off several other interests, the company has held onto to Pioneer until now.
With 9.2 percent of Pioneer, Sharp currently holds the largest single share of Pioneer. Pioneer in turn owns 0.8 percent of Sharp. The two companies will continue their collaborative efforts even after the sell-off.
Sharp is looking to pay off $2.14 billion in convertible debt, which represents less than a quarter of the company's overall debt. Sharp plans to raise $1.07 through a public stock offering and has managed to wrangle $313 million in direct bank investment.
Sharp's shares in Pioneer pale in comparison to both the company's immediate debt and overall debt, but the company has made serious strides since the fall of 2012, when investors were abandoning the company in droves.
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