Taiwan says Hon Hai paying too much for Sharp stake

Nieuws Algemeen Wereld 13 AUG 2012
Taiwan says Hon Hai paying too much for Sharp stake
Taiwan's Economics Ministry has asked Hon Hai Precision Industry for more information on a planned investment in Japan's Sharp, saying the initial agreement looks too expensive. The ministry's investment commission oversees all outbound investments and returned Hon Hai's application with the request for more details. "We think Hon Hai has not explained enough about the investment efficiency of the deal, which is related to price ... the deal is a little pricey," deputy executive secretary of the commission Emile Chang told Reuters. In March, Sharp announced a strategic partnership with Hon Hai, the holding company of Foxconn, to cooperate on LCD production. Hon Hai Precision Industry agreed to buy a 10 percent stake in Sharp for USD 844 million, or JPY 550 per share. The companies also recently agreed to renegotiate the deal, with Hon Hai looking to pay less per share or take a bigger stake in the company.

Categories:

Algemeen

Companies:

Sharp,  Foxconn,  Hon Hai Precision Industry

Regions:

Wereld

Tags:

Regulations, M&A buyouts & divestments

Related Articles

WERELD 26 MAR 2013

Sharp sees delay in Hon Hai investment

Sharp announced a delay in its expected capital injection from Hon Hai Precision Industry, agreed a year ago. The companies missed an agreed deadline of 27 March due to a lack of regulatory approvals in time. Sharp said the companies were otherwise making progress on their alliance in LCD panels, including joint management of the Sakai Display Products unit. Sharp said it will continue talks with Hon Hai on the terms of financing in the meantime, in order to continue the restructuring of the LCD business.

WERELD 29 NOV 2012

Sharp looking for capital from US partners - report

Sharp has offered a stake to Dell, amongst other US tech companies, in return for a stable supply of breakthrough display technology, The Wall Street Journal reported, citing people familiar with the discussions. Sharp is in talks with a number of US technology companies, including Dell, Intel and Qualcomm, to improve its balance sheet with a capital injection. The Japanese electronics manufacturer turned to US business partners as its negotiations with Taiwanese contract manufacturing giant Hon Hai Precisi

JAPAN 7 SEP 2012

Sharp to use property as collateral for bank loans

Japanese electronics company Sharp is planning to use its Japanese real estate as collateral for bank loans. With the move, Sharp is hoping to curb large losses which have severely affected its share price and throw into doubt a deal that would see Taiwanese firm Hon Hai Precision invest in the company. Sharp is seeking bank financing of up to JPY 150 billion, AAP reports. Sharp has already announced it is drafting business restructuring measures, which will included job cuts.

WERELD 3 SEP 2012

Sharp offers lower price for sale to Foxconn

Japan's Sharp is reportedly offering to lower the price of the 9.9 percent stake it is selling to Foxconn Technology. The companies had earlier agreed that Foxconn would pay JPY 550 per share but Sharp is now offering the shares at an average share price, as its shares have fallen to around JPY 200 due to deteriorating earnings performance, the Nikkei reports. Sharp president Takashi Okuda said the ball was now in Foxconn's court but said he would like to reach a deal as soon as possible. Okuda also said th

WERELD 27 MAR 2012

Sharp to sell stake to Foxconn

Sharp announced a strategic partnership with Taiwanese manufacturer Hon Hai, the holding company of Foxconn, to cooperate on LCD production. Hon Hai Precision Industry has agreed to take up to 50 percent of large LCD panels from the Sharp Display Products plant in Sakai-city, Osaka, Japan. Companies associated with Foxconn chairman Terry Gou will also acquire a 46.5 percent stake in the manufacturing site for JPY 66 billion, reducing Sharp's stake to 46.5 percent and leaving Sony with 7 percent in the plant

Just In

13:39

True reshuffles executive team

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.