Chinese-Taiwanese group to delay bailout funding for Apple supplier Japan Display

“A Chinese-Taiwanese group is delaying an up to 80 billion yen ($729.33 million) investment planned as part of a rescue deal for Apple Inc supplier Japan Display as it wants to reassess the target’s prospects, the Japanese firm said,” Makiko Yamazaki reports for Reuters.

“A prolonged delay could put at risk the survival of the cash-strapped smartphone screen maker, which has been hit by Apple’s slowing iPhone sales and a late shift to organic light-emitting diode (OLED) screens,” Yamazaki reports. “The buyer group, which includes Taiwanese flat screen maker TPK Holding and Chinese investment firm Harvest Group, had planned to formalize the investment decisions by mid-June.”

“A source familiar with the matter said that Japan Display’s financial situation has changed since the deal was agreed, prompting the group to reassess the business. The source declined to elaborate on the change in the situation,” Yamazaki reports. “‘The buyer group is apparently [pressuring] Japan Display to sweeten the offer,’ said Masayuki Otani, chief market analyst at Securities Japan, who is not involved with the deal. ‘It’s a good deal for the group as it gets solid panel technologies, but the cheaper the better.'”

Read more in the full article here.

MacDailyNews Take: Trying to get a bit sweeter deal for an historically troubled enterprise seems prudent.

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Apple’s next-gen flagship OLED iPhone is codenamed ‘Ferrari’ – December 20, 2016
Apple says OLED finally ready for iPhones, but most suppliers still aren’t – November 17, 2016
Apple supplier Japan Display seeks $703 million bailout from Japanese government – November 11, 2016
Sharp President confirms Apple iPhone transition to OLED displays – October 31, 2016
Apple supplier Sharp names Foxconn exec as CEO to spearhead revival – May 12, 2016
Apple supplier Sharp preps AMOLED displays after Foxconn acquisition – April 6, 2016
Did Apple help Foxconn buy Sharp? – March 31, 2016
Japan Display, an Apple iPhone supplier, seeks financial help from Japanese government – August 9, 2016
Japan Display CEO hints at strong Apple orders ahead of new iPhone launch – September 3, 2015
Japan Display and Apple to build new $1.4 billion plant for iPhone Retina displays – March 6, 2015
Japan Display’s reliance on iPhone orders rises – June 24, 2014

1 Comment

  1. This is predatory… not prudent. It’s clear that they saw an angle and know that Japan Display is backed into a corner now. They see blood and want the patents and tech on the cheap.

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