Solid Group seeks extension of deal with Sony

Solid Group Inc., a leading manufacturer and distributor of consumer electronic products, is negotiating for the possible extension of its joint venture agreement (JVA) with Japan’s Sony Corp.

The JVA, an eight-year deal forged in 1997 by SGI and Sony Corp., will expire on May 8.

In a disclosure to the Philippine Stock Exchange, SGI said it had received formal notice from Sony Corp. regarding the expiration of its joint venture with the Japanese electronics giant.

SGI owns 33.33 percent of Sony Philippines Inc., the corporate vehicle formed to distribute Sony television sets as well as other audio and video products in the country.

"In anticipation of the formal expiration of the JVA, representatives of both SGI and Sony have agreed to pursue negotiation toward an equitable settlement of all matters relating to the JVA and its expiration and in order to ensure continuity and harmony of the good relationship that has spanned over 35 years of SGI’s efforts in establishing and strengthening Sony’s dominant presence in the Philippines," SGI corporate information officer Enrique Ligeralde said.

Sony Corp. is gearing for a pivotal year as it created a new management structure designed to expand upon its core strengths as a global electronics, entertainment and technology company.

Sony hopes to further strengthen its entertainment content businesses, solidify its mobile phone business, develop the next-generation semiconductor chip, and expand its financial services business.

Last year, SGI approved the purchase of the holdings of Sony Corp. and Sony International (Singapore) Ltd. in majority-owned units SSEC Inc. and Precos Inc., respectively, for P40 million.