According to reports from The Japan Times and Bloomberg, Nippon Electric Corporation (NEC) is considering selling its data centers, hoping to streamline its portfolio and raise cash by seeking to sell non-assets, according to people familiar with the matter.
The Tokyo-listed company is seeking to hire financial advisers to help prepare for a sale of the business, which could be valued at $400 million to $500 million (¥59.1 billion to ¥74 billion), the report said. Other data center operators and infrastructure funds have shown preliminary interest in the assets, people familiar with the matter said.
Considerations are still at a preliminary stage and a formal sale process may not begin until later this year, people familiar with the matter said. NEC may also decide to retain a minority stake in the business, or even keep the assets longer, people familiar with the matter said.
Representatives for NEC declined to comment.
International Electronics Business News learned that Nippon Electric Corporation (NEC) was founded in 1899 and focuses on information technology and network communications, biometrics, Internet of Things and artificial intelligence technology.
NEC shares have more than doubled in the past 12 months, valuing the company at about $20 billion. The company has been selling non-asset assets, including its stake in Japanese chipmaker Renesas Electronics, under pressure from activist investors.
In February, NEC sold part of its stake in Japan Avionics Industries to the company, cutting its stake from 50.8% to about 34%.
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