“A Chinese-Taiwanese group will take control of Apple Inc supplier Japan Display after pumping in funds as part of a 232 billion yen ($2.1 billion) bailout plan for the troubled display panel maker,” Makiko Yamazaki reports for Reuters.
“The rescue comes after previous, publicly funded bailouts failed to help the company cut its dependence on Apple, whose slowing iPhone sales have badly hit Japan Display,” Yamazaki reports. “The deal will make the buyers Japan Display’s biggest shareholders – with a 49.8 percent stake – replacing the Japanese government-backed INCJ fund and effectively ending the government’s efforts to keep the last remaining domestic display maker out of foreign hands.”
“The buyer group, which includes Taiwanese flat screen maker TPK Holding and Chinese investment firm Harvest Group, will inject up to 80 billion yen into Japan Display by buying shares and bonds”,” Yamazaki reports. “INCJ will also join the bailout by accepting a debt-to-preferred equity swap totaling 75 billion yen and extending senior loans worth 77 billion yen. After the deal its stake will fall to 12.7 percent from 25.3 percent.”
Read more in the full article here.
MacDailyNews Take: The saga continues… subject to U.S. national security review, of course.
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