Foxconn takeover of Sharp goes ahead after China approval

Nieuws Algemeen China 12 AUG 2016
Foxconn takeover of Sharp goes ahead after China approval

Taiwan-based Foxconn announced that China’s anti-monopoly watchdog has approved its acquisition of Japan’s Sharp. Foxconn and Sharp will now move to complete the transaction in accordance with their agreement "as soon as possible", Foxconn said. Foxconn plans to spend JPY 388.8 billion (approximately USD 3.84 billion) to take a two-thirds stake in Sharp.

Sharp confirmed it is going ahead with the issue of new shares to Foxconn and its parent company Hon Hai Precision Industry. The new capital will end its previous situation of negative equity. Sharp said it also completed a new syndicated loan of JPY 300 billion with Mizuho Bank and The Bank of Tokyo-Mitsubishi UFJ. Each bank will provide JPY 150 billion. 

As part of the takeover, Sharp's CEO Kozo Takahashi is stepping down, as is Hiroyuki Fukui, head of corporate strategy and management planning. It was announced earlier that Tai Jeng Wu, an executive VP at Hon Hai Precision Industry, will take over as president of Sharp once the deal is completed. 

Categories:

Algemeen

Companies:

Sharp,  Foxconn

Regions:

Wereld

Countries:

China

Tags:

Components, Devices, Shareholders & subsidiaries, Wholesale, M&A buyouts & divestments

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