Sharp: Won’t Sell Copier Business; $1.3 Billion Bailout May Be in the Works

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Reuters reported on January 6th that Sharp Corporation of Osaka, Japan, has again denied rumors that it’s selling its copier business. The brief Reuters report came from the news-organization’s Tokyo newsroom.

Reuters also reported yesterday that, this week, a $3 billion restructuring plan for Sharp may be completed.

Under the restructuring plan, the Japan government’s Innovation Network Corporation of Japan (INCJ) would invest more than 200 billion yen ($1.7 billion) into Sharp. This would be the third time in three years that INCJ has   contributed investment into Sharp.

Sharp is also reportedly asking the Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank to convert about 150 billion yen ($1.3 billion) of existing loans into preferred shares. Sharp received approximately $1.7 billion in aid in May 2015, but since then reported losses in both August and November 2015.

Sharp has reportedly received an investment offer from Taiwan’s Hon Hai Precision Industry, also known as Foxconn, for its LCD division.

In a January 12th press release, Sharp neither confirmed nor denied these reports, but stated that: “In order to reconstruct our management, we have been continuing negotiations with other companies regarding fundamental structural reforms of LCD panel business and such, however nothing is determined yet at this moment.”

More Resources

December 2015: Sharp Expands Partnership with Clover, Enables Dealers to Combine Sharp and Clover Supplies on Same Invoice

December 2015: HP Inc. Announces Highest-Volume A3 MFPs to Date, New JetAdvantage Solutions, Document Scanners

November 2015: Loss for Sharp’s Second Half, but Business Solutions’ Sales Up 3.8 Percent

September 2015: Sharp Business Systems Acquires Sandhill Office Systems’ Customer Base for Service and Support

August 2015: Sharp Reports Net Loss of $274 Million; MFP Sales Steady; Will Exit TV Business in Americas

May 2015: Banks to Provide Sharp with $1.7 Billion Bailout, Layoffs in the Works, Reports Loss for Fiscal Year

May 2015: Sharp Said to be Seeking Financial Assistance from Government-Backed Fund

March 2015: Sharp to Cut Some 6,000 Jobs from Global Workforce as Part of Restructuring

February 2015: Sharp Falters with Latest Financial Results, but MFP Business Sees Gains

January 2015: Sharp Sells U.S. HQ in Mahwah, but Will Lease Site to Stay There

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