“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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