Market Chatter: Nidec in Discussions to Renew 600 Billion Yen Credit Lines With MUFG, SMBC

MT Newswires Live
Oct 02

Nidec (TYO:6594) is currently in talks with Mitsubishi UFJ Financial Group's (TYO:8306) MUFG Bank and Sumitomo Mitsui Financial Group's (TYO:8316) Sumitomo Mitsui Banking Corp. to renew committed credit lines totaling 600 billion yen, Bloomberg News reported Friday.

Nidec is reviewing options to optimize liquidity, although the amount and other conditions are yet to be decided, the report said.

The discussions come as Nidec faces increasing investor scrutiny after an accounting scandal led to revisions in past earnings and considerable impairment losses. The company's auditor also declined to issue an opinion on its annual securities report, it said.

In addition, concerns over a potential delisting and further credit-rating downgrades also weighed on company shares, which have plunged around 25% this week, the report said.

Nidec, MUFG Bank, and Sumitomo Mitsui Banking Corp. did not immediately respond to a request for comment from MT Newswires.

Shares of Nidec added nearly 1%, while those of Mitsubishi UFJ Financial Group fell over 1%, and shares of Sumitomo Mitsui Financial Group declined nearly 2% at market close.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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