Asia Biz News - Asian Business News and Tenders
NEC Corporation to Sell Its Lithium-Ion Battery Business
August 5, 2018
NEC Corporation of Japan is selling all shares of its lithium-ion battery business to Envision Electrodes Corporation.
Envision Electrodes Corporation is a member of Envision Group, a renewable energy company.
The transfer of NEC Energy Devises shares to Envision and AESC shares to Nissan is subject to the fulfillment of the conditions outlined in the transfer of shares. If these transfers are executed, capital gain will occur.
As to why NEC is making this move, the company announced that it is now focusing on Solutions for Society businesses. In the smart energy field, NEC is shifting towards services for the construction, operation, and maintenance of electric storage systems to support goals such as stabilizing power grids and improving the efficiency of companies' energy use.
Approximately 10.0 billion yen in operating profit upon execution of the transfer of the NEC Energy Devices shares and approximately 10 billion yen in non-operating income upon execution of the transfer for AESC shares are expected to be recorded in the consolidated financial statement for the fiscal year ending March 31, 2019. This profit and income, however, has already been incorporated in the financial forecasts for the fiscal year ending March 31, 2019.