S Korea's Samsung to acquire stake in Japan's Sharp
06 March 2013
Sharp Corp will sell ¥10.4 billion ($111 million) of stock to Samsung Electronics Co as the Japanese display maker tries to recover from a record loss amid slowing demand for TVs and Apple Inc iPhones.
According to a filing with Japan's finance ministry, Samsung would acquire a near 3-per cent stake for ¥290, a 15-per cent discount to Sharp's closing price today.
The Korean company, the largest maker of TVs and smartphones in the world, said the investment would secure a supply of liquid-crystal displays from Sharp, though it added it would not be involved in the management.
Sharp has cut staff and agreed on a stake sale to Qualcomm Inc as attempts to restructure as it struggles with slowing demand for its TVs and competition from rivals, including Samsung.
Today's agreement comes in the wake of Sharp's sale of shares to Qualcomm Inc as the maker of Aquos TVs attempted a profitability revival with job cuts and assets sale.
Sharp, which had failed to conclude a deal with Foxconn Technology Group during almost a year of talks, was looking to raising funds after projecting a record full-year loss of ¥450 billion.