Apple supplier Hon Hai buying stake in Sharp |
| CNET - Mar 27, 2012 |
Stung by huge losses and dwindling sales, Sharp Electronics is selling a chunk of itself to Hon Hai in a bid to raise cash and expand its LCD TV production.
Hon Hai will purchase about 11 percent of Sharp and 46.5 percent of the company's LCD TV factory in Sakai, Japan. Once the deal is done, the factory will be 46.5 percent owned by Sharp, the same amount by Hon Hai, and 7 percent owned by Sony. In return, Sharp will issue about $800 million in stock to Hon Hai, according to a New York Times report.
Sharp plans to use the money from the stock sale to invest in new LCD technology, not just for TVs but also for mobile gadgets, the Times report added. The company will work with Hon Hai's Foxconn unit to manufacture smartphones and other devices outfitted with LCD panels. Sharp is also expected to use Foxconn's factories as leverage to offer lower prices to its customers and ramp up products more quickly.
Read Full Article from CNET
- Posted: 2012-03-27 11:23:28
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
