* Funds to bolster auto electronics, other businesses
* Shares to be offered to European, other foreign investors
* Panasonic's stake to fall to 19 pct from 24 pct (Recasts with official announcement)
By Taro Fuse and Reiji Murai
TOKYO, Jan 5 (Reuters) - Struggling Japanese electronics maker JVC Kenwood Holdings said it would sell up to 10.6 billion yen ($129 million) in a share offering to fund investments and shore up its finances.
The company, formed in 2008 through the merger of JVC and Kenwood, is headed for its third straight annual loss this financial year, hit by tough industry competition and hefty restructuring costs.
It has also struggled to regain the trust of investors after restating its earnings last year due to improper accounting.
JVC Kenwood said it would use the funds to invest in its car electronics and professional systems businesses, as well for new businesses such as healtchare and education and acquisitions.
The company said it would issue 30 million new shares, including a greenshoe option, to foreign investors, representing a dilution of 27.5 percent on the outstanding shares. It would also sell 12 million shares from its treasury stock.
The offering, to be lead arranged by Nomuar International, will cut Panasonic Corp's stake in the company to about 19 percent from 24 percent.
Shares of JVC Kenwood fell as much as 4.9 percent in early Wednesday trading after Reuters and other media reported the company's capital raising plan before reversing course and closing up 8.5 percent at 307 yen.
The company announced the deal after the market close. ($1=82.02 Yen) (Writing by Tim Kelly and Taiga Uranaka; Editing by Nathan Layne)