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Dream achieved, Hon Hai Group acquires Sharp for 700 billion yen

Author: ComeFrom: Date:2020/12/2 17:15:13 Hits:786

According to a report on the Japanese "Keizai Shimbun" website on the 25th, Sharp held an interim board of directors on the 25th and made the decision to accept Hon Hai's reconstruction plan. Sharp will accept 700 billion yen of assistance including direct investment and enter Hon Hai's banner. This is the first time a foreign company has acquired a large Japanese electromechanical company. Hon Hai will expand its business in the world after acquiring Sharp.

The OEM production of Apple mobile phones accounts for more than half of Hon Hai’s sales. However, the global demand growth of the mobile phone business is beginning to passivate, and the diversification of revenue is Hon Hai's top priority. Hon Hai hopes to fight against Samsung by acquiring Sharp, which owns LCD, white goods and other products and technologies.

Hon Hai Chairman Guo Taiming said that in addition to solar cells, Sharp’s other main businesses will continue. Regarding the employment of Sharp's existing employees, Guo Taiming has expressed the idea of ​​maintaining, and Xin said that employees under the age of 40 will not be laid off.

It is estimated that the main business, layoffs of employees, and what operating system Hon Hai and Sharp adopt will become the focus of attention of all parties after the acquisition.

Due to the downturn in the LCD business, Sharp had a consolidated loss of more than 220 billion yen in the 2014 fiscal year (until March 2015). The 2015 fiscal year is not optimistic. It is expected that it will be very difficult to achieve a profit of 10 billion yen.

Sharp was initially prepared to accept the reconstruction plan of the Japanese Industrial Innovation Agency. However, the reform agency asked Sharp’s two main banks to provide assistance of up to 350 billion yen, which was embarrassing for the banks.

Guo Taiming directly explained the aid plan to increase the amount at the end of January, which changed the direction, and Sharp began to turn to the Hon Hai plan.

According to current reports, Hon Hai envisages a total of 700 billion yen in aid. Plan to purchase Sharp preferred stocks held by major correspondent banks, and no longer require banks to provide additional financial assistance.

Hon Hai chairman Guo Taiming said inside the company that he would invest in organic EL panels. After acquiring Sharp, he plans to invest in small and medium-sized LCD panel factories to achieve mass production of organic EL panels. He also envisioned the establishment of an organic EL production line for TVs in Sakai Display Products (SDP), which is jointly operated with Sharp.

Sharp reached an agreement with Hon Hai four years ago, agreeing that Hon Hai will make capital contributions to Sharp’s main body, but then it has not been realized because of the decline in its share price. Sharp, who has a sense of distrust of Hon Hai, said that if Hon Hai's plan is adopted, Hon Hai will need to pay a deposit. Hon Hai agreed.
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