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