[May 14, 2013]

$18bn Sony (SNE) Break-Up Spinoff Report. Japanese Demergers To Grow

"Large Cap ($5bn+) Spinoff stocks delivered early shareholders +27% on avg. one year post listing over the last decade", according to top global break-up research advisors, The Spinoff Report®.

$18bn market cap, Sony (SNE or 6758 JT), has been approached by renowned value hunting US Hedge Fund, Third Point and its CEO, Dan Loeb. In essence, Loeb believes by taking Sony Entertainment, the film and music division, and selling up to 20% of it, the company could use the subsequent capital raised to strengthen other segments of Sony which management need to prove they can strategically develop to meet their future targets.

Ryan Mendy, COO of The Spinoff Report (TSR (News - Alert)) believes there is another kicker; "In technology, cash can be a Kingmaker. Don't forget, SNE's shares have lost over ten times what they were worth in 2000. From our analysis, we believe a future complete Spinoff of the remaining c80% of Sony Entertainment is possible". TSR highlight other stocks that have completed a c20% listing, then once management have witnessed the growth, have decided to Spinoff the other c80% to parent shareholders, e.g. Dean Foods Co. (DF), Sunoco (SUN). Examples of other future 20/80 'percenters' from their research are: Inergy (NRGY) and Pfizer (PFE).

Last week, Sony reported an annual profit for the first time in five years, reportedly boosted by asset sales and a weakening yen. But the latter is one of the catalysts for investors concentrate on if looking at Japan and its ability to break-up and unlock some of its most valuable stocks, according to the TSR.

More Future Japanese break-up stocks

Loeb personally visiting Sony's CEO is the right approach shareholders need to take if they are to change the minds of Japanese board management. "It's important culturally" cites Mendy. Japanese companies are open to investment by US and European asset managers, but the risk is telling them how to strategically run their businesses.

Mendy cites: "With a government change, currency revaluation and equities being released, Japan is proving it is willing to take a new approach with global markets if it is to grow".

With a detailed future research calendar of global corporate break-ups being released, The Spinoff Report® states there is much more to come from this region for investors.

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