Nissan Motor Co. Ltd. is looking to sell Nissan Trading Co. Ltd., its wholly owned subsidiary that distributes vehicle components and raw materials, in a potential deal worth about US$1 billion, Bloomberg News reported Sept. 18, citing people familiar with the matter.
Nissan Trading recorded ¥676.1 billion in revenue in the fiscal year ended March, of which 37% came from the sale of vehicle parts and 47% from the sale of materials, the report said. The business unit, which was established in 1978, exports and distributes these products through a network of 26 offices across 15 countries, according to its website.
The sources told the news outlet that the Japanese carmaker has invited private equity and trading firms to sell the business and may pick a buyer as early as October. They added that the target value of the deal includes assumed debt and that it would help Nissan free up cash to help turn around its wider business that was hit by flagging sales in the U.S.
Nissan spokesman Koji Okuda declined to comment, according to Bloomberg News.
The report came on the heels of Hiroto Saikawa's resignation as president and CEO of Nissan. Saikawa stepped down from his roles after admitting to receiving excess pay by way of a share appreciation rights program.
The company, which has incurred about ¥35 billion in damages following the alleged financial misconduct by former chairman Carlos Ghosn, announced in July that it is axing 12,500 jobs worldwide after reporting a 95% year-over-year plunge in net income for the first fiscal quarter.
Nissan's stock fell as much as 1.07% to ¥709.00 before closing down 0.39% to ¥713.90.
As of Sept. 17, US$1 was equivalent to ¥108.15.
