Foxconn Backs Down at Last Minute from Purchasing Sharp
The Japan Times reports that Sharp Corporation of Japan yesterday appeared to be accepting a bid from Foxconn of Taiwan, after apparently turning down a bid from the government-backed Innovation Network Corporation of Japan (INCJ), the latter of which had proposed an investment of about ¥300 billion. Hours within the deal being signed however, Foxconn said that it would be postponing the deal because of “new material information” it obtained from Sharp Corporation.
Foxconn released the following statement: “We acknowledge receipt of a notice today from Sharp’s board choosing us as their preferred partner. After receiving new material information from Sharp yesterday morning, we have accordingly informed Sharp last night (before their board meeting on 2/25) that we will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation.”
The new material information is a list of about ¥350 billion of Sharp liabilities, according to The Wall Street Journal.
Sharp did not comment on Foxconn’s statement. It said its board had decided to accept Hon Hai’s rescue plan yesterday Foxconn submitted a bid of around ¥660 billion, while INCJ proposed an investment of around ¥300 billion. If the deal had been accepted, Foxconn would have owned 66 percent of Sharp.
Foxconn Chairman Terry Gou said he hoped to reach a deal with Sharp by the end of the month.
- February 2016: Report: FoxConn Will Acquire Sharp by End of Month
- February 2016: Loss for Sharp’s Nine Months; Business Solutions’ Sales Steady
- January 2016: Sharp: Won’t Sell Copier Business; $1.3 Billion Bailout May Be in the Works
- November 2015: Loss for Sharp’s Second Half, but Business Solutions’ Sales Up 3.8 Percent
- 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
- March 2015: Sharp to Cut Some 6,000 Jobs from Global Workforce as Part of Restructuring
- March 2015: Sharp President to Ask for More Funds from Lenders