Foxconn Reportedly Lowers Bid for Sharp by Some $900 Million


Reuters reports that Taiwan’s Foxconn will lower its offer for Japan’s Sharp Corporation by at least around 100 billion yen ($893 million) to account for Sharp’s likely worse-than-expected annual earnings, according to two sources.

Sharp announced last month said it would issue around $4.4 billion worth of new shares to give Foxconn, previously known as Hon Hai Precision Industry, a two-thirds stake in Sharp. However, Foxconn put its takeover bid on hold after Sharp revealed previously undisclosed potential liabilities.

Foxconn also stated it needed more information about Sharp’s recent business. Sharp is said to be likely to record a loss in the tens of billions of yen for its fiscal year that will end this month, rather than the 10 billion yen in profit it had previously said it would report.

The government-backed Innovation Network Corp of Japan (INCJ) had also made a bid for Sharp, but then reported that it was no longer interested.

According to Reuters, Sharp will hold a board meeting to decide whether to accept Foxconn’s bid by the end of March.

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