Media reports have revealed that Japanese technology giant NEC is weighing the sale of its data centers as part of a strategic move to streamline its portfolio and generate cash through divesting non-core assets.<\/p>\n
The Tokyo-based company is reportedly in the process of considering financial advisers to assist in preparing for the potential sale of its data center business. Valued between $400 million to $500 million (\u00a559.1 billion to \u00a574 billion), the assets have attracted preliminary interest from other data center operators and infrastructure-focused funds, according to the sources, who preferred anonymity due to the private nature of the discussions.<\/p>\n
While these considerations are still in the preliminary stages, a formal sale process may not commence until later this year. Additionally, NEC may opt to retain a minority stake in the business or prolong the holding of the assets, as stated by the sources.<\/p>\n
Established in 1899, NEC specializes in information technology and network communications, biometric recognition, the internet of things, and artificial intelligence technologies, as outlined on its website.<\/p>\n
NEC\u2019s shares have seen a significant surge, more than doubling in the past 12 months, leading to a valuation of approximately $20 billion. In response to pressure from activist investors, the company has been actively divesting non-core assets, including its stake in Japanese chipmaker Renesas Electronics.<\/p>\n
In February, NEC reduced its ownership in Japan Aviation Electronics Industry by selling some of its shares back to the company, resulting in a decrease from 50.8% to about 34%. Although Oasis Management sought an injunction to halt the share buyback, the court dismissed the request later on.<\/p>\n","protected":false},"excerpt":{"rendered":"
While these considerations are still in the preliminary stages, a formal sale process may not commence until later this year. Additionally, NEC may opt to retain a minority stake in the business or prolong the holding of the assets, as stated by the sources.<\/p>\n","protected":false},"author":186,"featured_media":15018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[9619,3655],"class_list":["post-15017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-japan","tag-japan-aviation-electronics","tag-nec"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/15017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/comments?post=15017"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/15017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media\/15018"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media?parent=15017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/categories?post=15017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/tags?post=15017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}