Sony, Solid Group deadlocked over renewal of joint venture pact

Sony Corp. of Japan and the Solid Group of businesswoman Elena Lim have not yet reached an agreement on renewing their joint venture agreement in the Philippines.

Sony Philippines Inc. president and chief executive officer Hiroaki Kobayashi told The STAR that Sony Japan and its Philippine partner still have not yet reached an agreement on renewing the joint venture deal that ended last May 2005.

Kobayashi said that the negotiations are being handled by the Japanese parent firm and that he is not authorized to talk about the matter.

Sony Japan controls 67 percent of Sony Philippines while the Solid Group has the remaining 33-percent stake in the Philippine joint venture company.

Sony Philippines distributes Sony products in the Philippines. It does not have any manufacturing operations in the country.

Asked if Sony Japan will attempt to buy out its Philippine partner, Kobayashi said the matter is up to the parent firm.

Kobayashi said Sony Philippines has not exactly been profitable in its operations, although he refused to reveal the financial performance of the local joint venture company.