Oh-oh! I thought today I would be confirming that the VOXX/Sharp/Onkyo definitive agreement – which was supposed to be concluded today, May 20, 2021 – was in fact fully executed as directed in the original tentative agreement. But instead, I have learned that the definitive agreement for this sale was NOT in fact signed today, as dictated in the preliminary agreement. Now what?
Is There Trouble in Osaka for Onkyo?
Today was supposed to be the day that the preliminary agreement signed between Onkyo Corp. and VOXX Intl. was to be replaced with a definitive agreement representing all of the final terms and conditions of the final sale transferring the Onkyo A/V division to a new partnership consisting of Sharp Corp. and VOXX. But instead, Onkyo had to put out a statement saying the deal has changed.
I have to admit, I did not foresee that this deal would have any hiccups. However, as I mentioned in my last report, I did hold some reservations. Onkyo has had three previous deals fall apart, which is part of the reason why they are where they are right now.
A Rather Nebulous Situation
But, my thinking went, surely this time Onkyo would expend every effort to cross every “t” and dot every “i” to get this deal done. Yet as I sought confirmation that the definitive agreement was in fact signed as specified by today’s mandated date, I learned that the deadline has been changed. And changed in a rather nebulous manner.
Onkyo released a statement today that sought to address the situation.
Although discussions on the transfer of this business are proceeding smoothly, confirmation by the three companies continues in the final adjustment part. Since it has been done, we have decided to change the scheduled conclusion date that was disclosed.
“The scheduled date for concluding a formal contract that stipulated the final details and conditions of this transfer shall be ‘May 20, 2021 (scheduled).’ However, it has [now] been changed to ‘late May 2021 (scheduled)’ and will be disclosed as soon as it is confirmed.”Onkyo statement of May 20,2021, titled ‘(Progress / change of disclosure items) Notice of conclusion of basic agreement regarding transfer of home AV business’
The Devil is in the Details
You know, the devil is in the details. This rescheduling of the date for the three parties to sign the definitive agreement may be just a formality. It takes time to hash out the final wording. But the fact is, if something is going to rise up to derail this deal, it will be in the detailed negotiations of all of the final terms and conditions.
I believe that Onkyo remains what dealmakers like to call, “a motivated seller.” But Onkyo has been at the altar¹ three times before…only to see it slip away for different reasons.
So we wait for news of a fully executed, final, and definitive agreement…
The Word from VOXX on the Missed Deadline
Interestingly, there is no word of any of this delay on the VOXX, International website. VOXX, like Onkyo, is a public company and must report any events that could potentially affect the finances of the company. So their silence on this missed deadline is a little surprising.
Learn more about Onkyo by visiting: onkyousa.com.
See more on VOXX by visiting: voxxintl.com.
1 – Corrected the spelling of the word “altar”…h/t to Michael Riggs, great catch!