Taiwan's Hon Hai seals Sharp takeover for 3.5 bn
Date
3/30/2016 10:13:51 AM
(MENAFN- The Peninsula) Hon Hai's Vice President Tai Jeng-wu speaks during a news conference to announce the company's agreement to acquireSharpCorp in Taipei Taiwan March 30 2016. REUTERS/Tyrone Siu
Taipei:Taiwan's tech giant Hon Hai said Wednesday it had finally sealed a takeover of Japanese electronics maker Sharp in a "historic" deal worth 389 billion yen ($3.5 billion).
It is the first foreign acquisition of a major Japanese electronics firm and comes after weeks of delays with Hon Hai buying a 66 percent controlling stake.
But the cash injection from Hon Hai -- the multi-national owner of Foxconn the world's biggest iPhone and iPad maker -- is well down from the original 489 billion yen put on the table in February.
Hon Hai put the brakes on the takeover last month soon after it was first announced to review new information from Sharp believed to relate to the company's sizeable liabilities.
"Hon Hai and Sharp jointly announce that the two world-class technology industry leaders will form a historic strategic alliance" Hon Hai spokesman Simon Hsing said in Taipei.
"The new team will work together and move forward. We will start by restoring profits and strengthening operations so Sharp can again become a leader in the global electronics industry and reclaim the glory of a world-class enterprise."
Sharp has teetered on the edge of bankruptcy for years and Foxconn's colourful billionaire owner Terry Gou has long been pushing for a takeover.
The two firms have worked together on large-screen technology including for televisions and jointly operate a liquid crystal display (LCD) panel plant in Japan.
Still the Japanese government had reportedly been concerned about Sharp's key technologies falling into the hands of a foreign firm.
Sharp is still a leader in LCD technology and remains one of Japan's best-known corporate brands overseas despite its bleeding balance sheet.
But the century-old company piled up eye-watering losses after the 2008 global financial crisis and a restructuring plan has yet to pull it out of the red.
AFP