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Last Updated: Wednesday, 25 January 2006, 12:20 GMT
Struggling Sanyo overhauls board
Rechargeable battery manufactured by Sanyo
Sanyo is trying to revive its business
Sanyo, the struggling Japanese consumer electronics firm, has overhauled its management, prompting a sharp rise in its share price.

Satoshi Iue, son of Sanyo's founder, is to step down as an executive director while leading financial shareholders will gain control of the firm's board.

Sanyo is in the midst of a radical restructuring as it tries to reduce its losses and refocus its operations.

It is scaling back in many areas, ceasing DVD and VCR production.

Instead, it will focus on profitable niche manufacturing areas such as rechargeable batteries.

The firm has struggled to cope with fierce competition in the consumer electronics market and is expected to make a 202bn yen loss ($1.7bn, 982m) in 2005.

Management reshuffle

The management shake-up will see Goldman Sachs, Daiwa Securities and Sumitomo Mitsui Banking Corporation fill five out of the nine seats on a new management board.

The three firms are underwriting Sanyo's financial restructuring by agreeing to buy 300bn yen in newly issued shares.

Mr Iue, 73, is stepping down as an executive director after serving for 20 years as chairman and president.

He is the son of Toshio Iue who founded Sanyo in 1947.

Tomoyo Nonaka, the former journalist controversially appointed chief executive last year, will remain at Sanyo as chairman although the chief executive post is being abolished.

Investors responded positively to the changes, pushing Sanyo's shares up as much as 10% at one point.

The firm's shares closed up 8.1% at 348 yen.

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