Sony Group secured Tokyo Stock Exchange approval to list its financial services arm following a planned spinoff, marking the completion of a corporate restructuring that began over two years ago.
Sony Financial Group will begin trading on the Prime Market September 29, with the actual distribution of shares to Sony stockholders occurring October 1, according to a company filing Monday. Sony will retain less than 20% ownership, transforming the financial unit from a wholly-owned subsidiary into an equity method affiliate.
The electronics giant first announced the spinoff strategy in May 2023 as part of efforts to concentrate resources on its more profitable gaming and entertainment divisions. The financial unit, which Sony took private in 2020, generates revenue primarily through life insurance operations alongside smaller banking and non-life insurance businesses.
Sony Financial plans to establish a ¥100 billion ($676 million) share buyback program to manage post-listing volatility, raising questions about market demand for the standalone entity. The spinoff’s impact on Sony’s consolidated earnings remains under review, though the parent company has already classified the financial business as a discontinued operation.
The move represents Sony’s latest attempt to unlock value from non-core assets while investors increasingly focus on the company’s PlayStation gaming platform and music catalog monetization. Sony shares have gained approximately 15% this year as the broader Japanese market rallied.
