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.
- February 2016: Foxconn Backs Down at Last Minute from Purchasing Sharp
- February 2016: Report: FoxConn Will Acquire Sharp by End of Month
- February 2016: Loss for Sharp’s Nine Months; Business Solutions’ Sales Steady
- 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
- February 2015: Sharp Falters with Latest Financial Results, but MFP Business Sees Gains