Sony Life misses deadline at ClearView, co-operation under question
Regulatory woes in Japan are said to have prevented Sony Life from making a tilt for the $1 billion wealth management and life insurance group, ClearView Wealth.
Street Talk understands the Japanese giant failed to make a takeover bid for the listed ClearView in time for Wednesday night's deadline.
It means Sony Life's 14.9 per cent stake is now at the mercy of fellow ClearView strategic investor Crescent Capital Partners, which can shop Sony's shares around along with its own 38.4 per cent stake.
However, it is understood Crescent does not have a rival acquirer lined up, at least for a deal in the short term.
It may also have implications for a co-operation agreement between Sony Life and ClearView.
So the door is ajar for Sony Life, which is said to continue to evaluate ways it may be able to execute a transaction. Although there are clearly hurdles.
Japan's Financial Services Agency has taken a strong interest in Sony – including dispatching inspectors to the company - after finding several employees were profiting from issuing fake life insurance contracts. This column flagged in March that a deal was up against roadblocks including regulatory issues in Japan, which had the potential to put a stop to the transaction and frustrate Crescent.
ClearView's shares last traded at $1.30. They started the year at $1.50.
Crescent acquired its ClearView stake six years ago via a 59¢-a-share offer that included cash of 55¢ a share, a franked dividend and a special dividend. At the time though the firm and its partners didn't get sufficient acceptances to take ClearView private.
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