Japan’s Pioneer to Get $500 Million Investment From Private-Equity Firm

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Hong Kong-based private-equity firm Baring Private Equity Asia has agreed to invest roughly half a billion dollars in Pioneer Corp., likely becoming the controlling shareholder, in another example of overseas investors taking a role in restructuring venerable Japanese brands, The Wall Street Journal reported. Pioneer, a struggling maker of car audio and navigation equipment, is trying to compete in the quickly changing market for internet-connected vehicles with autonomous-driving functions. In June, a group led by U.S. private-equity firm Bain Capital purchased Toshiba Corp.’s memory-chip business to better compete with rivals such as Samsung Electronics Co. Pioneer said Wednesday that Baring intended to provide ¥50 billion to ¥60 billion ($448 million to $538 million) of equity capital through a private placement. Before the equity investment, Baring plans to lend ¥25 billion to Pioneer on Sept. 18 so the electronics maker can make a debt payment. Read more. (Subscription required.)