APPLE CONTRACTOR FOXCONN TO TAKEOVER SHARP FOR $5.8.
Sharp Corporation is being agreed to provide a takeover by the Foxconn of Taiwan. Some of the sources familiar with this matter say that, the largest acquisition of the Japanese tech firm by the abroad company and with one which will bolster Foxconn’s position as being the Apple Inc’s biggest supplier.
One of the source said that this Taiwanese firm is known basically as Hon Hai Precision Industry Co., and it is set to invest more than 650 billion yen that is approx. $5.8 billion in the loss making liquid crystal display maker.
Sharp co.’s board voted unanimously to accept the offer by one of the largest contract of electronics manufacturer in a world, to over a rescue by the state backed investment fund. It is signaling an opening up of insular technology sector of Japan by foreign investment by such a company.
After five years of courting by Terry Gou, the Foxconn founder, whom is seeing the ownership of Sharp as a way to compete better with the Asian rivals like as of Samsung Electronics Co, the decision comes on this Thursday.
The managing director of Parry International Trading and a brokerage in the Hong Kong, Mr. Gavin Parry says that Sharp co. has the technology to build/ manufacture the components to compete with rivals like Samsung which is an Apple supplier, that means with the Sharp under umbrella Foxconn can help the Apple wean itself off the Samsung company and this will gives Foxconn better pricing and more power with Apple.
Investment of Foxconn is expected to include the assumption of the debt. Sharp co was a highly profitable manufacturer of premium TVs and the favored screen suppliers to the Apple. But it has to struggle in these recent years as because of massive investments in the advanced LCD plants failed to pay off the price competition with the Asian rivals.
Under the wing of Foxconn, Sharp is expected to get the help with fixing its finances and access to company’s wide distribution channels over world. In agreement of this deal, Sharp team & its executives have decided to put behind them ill feelings over the breakdown of an agreement between the two companies to form capital ties that held in 2012. The fund with them had planned to merge Sharp’s co. screen business with the Japan Display, in which the fund owns the majority stake of it.