Foxconn offers $5.3 billion to purchase Sharp
- jan
- 21
Foxconn has made an offer to purchase display maker Sharp for $5.3 billion (¥625 billion), according to The Wall Street Journal. The Japanese manufacturer is also mulling an offer from government-backed investment fund Innovation Network Corp. of Japan, which already owns a controlling stake in another display manufacturer, Japan Display Inc.
According to the WSJ:
Foxconn, formally known as Hon Hai Precision Industry Co., is offering more money for Sharp and a willingness to shoulder all of its debt, people familiar with the offer said. Those conditions are meant to persuade Sharp's creditors to make a decision based on the economics of the deal, rather than political considerations, one person familiar with the matter said.
Despite Sharp's troubles, the company's display and manufacturing know-how remain attractive to Foxconn, people familiar with the companies said. Also, while Foxconn principally assembles electronics to be sold under other brand names, the Sharp brand could be valuable if Foxconn wants to sell its own products to consumers.
A decision is expected by February 4, which is when the display maker will announce its quarterly results. If Foxconn manages to acquire Sharp, then it could start making its own line of electronics.
Source: The Wall Street Journal
