Sharp jumps on rumored reorg plan; Hon Hai said seeking to double planned investment

“Shares of Sharp Corp jumped by as much as 13 percent on Friday on reports the struggling Japanese electronics maker was looking at various restructuring avenues to gain favour with its creditors for a capital boost,” Reuters reports.

“The Nikkei business daily said on Friday that Hon Hai was looking to double its stake in Sharp to about 20 percent from a 9.9 percent agreed in March, and wants to pay about 200 yen per share, compared with the 550 yen initially agreed,” Reuters reports. “The Nikkei had earlier reported that Sharp was considering selling its copier, air-conditioner and LED businesses, with Kyocera Corp, Daiwa House Industry Co and Daikin Industries Ltd among possible buyers or investors. Sharp denied both reports, while a Hon Hai spokesman declined to comment.”

Reuters reports, “Separately, the Jiji News Agency reported that Osaka-based Sharp was seeking a 50 billion yen ($630 million) capital increase, and is approaching U.S. investment funds, Kyocera, Toshiba Corp, and others… Sharp, which makes screens for Apple Inc’s iPad and iPhone, needs to refinance as much as 360 billion yen ($4.54 billion) of short-term commercial paper and will need a further 200 billion yen in September next year to cover a maturing convertible bond. With debt totalling 1.25 trillion yen, anything outside of its core liquid crystal display (LCD) panel business could be put up for sale as Sharp looks for ways to raise cash and convince its lenders it’s a viable business.”

Read more in the full article here.

Related articles:
Sharp says in talks with Foxconn over March investment – August 10, 2012
Options narrowing for Japan’s cash-strapped Sharp; may face future as Apple component maker – August 6, 2012
Hon Hai to renegotiate investment in Sharp after losses – August 3, 2012
RUMOR: Apple to launch upgraded 9.7-inch IGZO iPad this summer; displays to shift from Samsung to Sharp – June 29, 2012
Apple supplier Hon Hai in talks to buy more Sharp shares; Terry Gou says Sharp alliance will beat Samsung in HD – June 18, 2012
Sharp to supply technology to Hon Hai’s China plant for Apple iPhone display production – May 24, 2012
Sharp announces production of world’s first IGZO LCD Panels – April 13, 2012
After using Apple’s new iPad with Retina display, old iPad screens become absolutely unacceptable – March 30, 2012
Apple ‘iTV’ beckons as jackpot in Hon Hai’s Sharp gamble – March 28, 2012
Foxconn-Sharp partnership likely targeting Apple orders – March 28, 2012
Taiwan Apple supplier Hon Hai becomes Sharp’s largest shareholder with 10% stake – March 28, 2012
Apple to unveil smaller 7.85-inch iPad this year, says anonymous Samsung official – March 13, 2012
Wow, Sharp sure is ramping up IGZO display production for some reason – March 2, 2012


  1. Sharp (and other Japanese companies) are very capable of designing and producing small, high-end electronic components. Apple may have said to Sharp and Hon Hai, “Look, we don’t want to take on the role of manufacturer in addition to what we already do. If you guys get your butts in gear, we can make you competitive with Samsung in manufacturing future components. We will buy exclusively through you. We are in this together.”

  2. Apple should consider licensing its Apple TV components to Sharp so that people could opt to buy an all in one solution. They could negotiate better screen pricing based on an exclusive license.

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