Foxconn and Sharp Approve $3.5 Billion Takeover Deal
30 Marzo 2016 - 11:10AM
Dow Jones News
TOKYO—The boards of Sharp Corp. and Foxconn Technology Group
approved a plan Wednesday for the Taiwanese electronics assembler
to take over the struggling Japanese consumer electronics company
for about 389 billion yen (US$3.5 billion), capping months of
negotiations that led to a lower price tag for the deal.
In a statement, Sharp said Foxconn would acquire newly issued
common shares at ¥ 88 each, a discount from its previous offer for
¥ 118 a share.
The total amount that Foxconn pays may increase later after it
buys preferred shares from Sharp's creditor banks.
The deal is a victory for Foxconn, which has been looking to
expand in the market for next-generation displays with an
acquisition of Sharp, a supplier of smartphone screens to Apple
Inc. Foxconn believes acquiring Sharp would allow it to move up the
technology value chain by manufacturing smartphone displays, which
are the most expensive components in mobile devices.
Based in Osaka, Sharp offers a wide range of consumer products
in Japan, from desktop calculators to flat-screen TVs and
refrigerators. It invented many of the world's first tech products
during its 103-year history but fell into a deep financial trouble
beginning in 2012 due to big investments in display screens and
solar panels. Its products remain a preferred choice for Japanese
consumers, but Sharp hasn't been able to expand its business
globally due to a lack of resources.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
(END) Dow Jones Newswires
March 30, 2016 04:55 ET (08:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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