Published on April 18th, 2016 | by James Ayre0
Foxconn Acquires 66% Stake In Sharp At Reduced Price Following Review Of “New Information”
April 18th, 2016 by James Ayre
The Chinese manufacturing giant Foxconn has acquired a 66% stake in the Japanese electronics giant Sharp at a “reduced” price, following a review of the “new information” that stalled earlier negotiations, according to recent reports.
Previous to the lull in negotiations, the stake acquisition was slated to go through for around ~$6 billion. Following the recent “review” and subsequent negotiation, it seems that the deal has gone through for a reported ¥388.8 billion (US$3.46 billion) — split thusly: ¥288.8 billion in Common Shares, and ¥99.9 billion in Class C Preferred Shares.
Foxconn’s presumed interests in Sharp are likely focused around the Japanese company’s various display panel/screen technologies — no doubt of great utility to the Chinese company considering it’s substantial and growing interests in the smartphone and tablet businesses.
The company’s potential interests in Sharp’s solar photovoltaic (PV) module business are more of an open question — the fate of the businesses is quite unclear at this point.
In a statement, the Foxconn founder and CEO, Terry Gou, commented: “I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp. We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights.”
The President and CEO of Sharp, Kozo Takahashi, commented as well: “I am pleased with our decision today to form a strategic alliance and merge both forces between Sharp and Foxconn to accelerate innovation with the ‘creativity and entrepreneurial spirit’ of both our companies.”