According to reports, NEC is considering selling its data center, which could be worth between 59.1 billion and 74 billion yen ($400 million to $500 million). The Japanese technology group is continuing to streamline its investment portfolio and raise cash by selling non core assets.
Bloomberg reported on Thursday, citing anonymous sources, that the Tokyo based company is currently seeking to hire financial advisors to help prepare for potential sales.
Sources say that other data center operators and infrastructure focused funds have shown initial interest in these assets.
Bloomberg reported that NEC is still in the initial stage of weighing various options, and the official sale process may not be launched until later this year. Sources told news media that NEC may also decide to retain a minority stake in the business, or even extend the duration of holding these assets.
According to reports, NEC has been selling non core assets, including its stake in Japanese chip manufacturer Renesas Electronics, following increasing pressure from activist investors.
Renesas does not have the financial resources to continue competing with Intel and Taiwan Semiconductor Manufacturing Co. in cutting-edge product investments. Due to considerations for investors Hitachi, NEC, and Mitsubishi, the company was unable to commit to restructuring.
In February of this year, NEC sold back some of its shares in Japan Aviation Electronics Industry to the company, reducing its shareholding from 50.8% to around 34%. The company produces connectors for iPhones.
Oasis Management, a hedge fund headquartered in Hong Kong, has submitted a ban to prevent Japan Electric from selling its stake in Japan Aviation Electronics, stating that the sale would cause harm to its shareholders. But this request was later rejected in court.
Meanwhile, NEC’s stock price has more than doubled in the past 12 months, with a valuation of approximately $20 billion.