je.st
news
Foxconn agrees Sharp takeover for JPY 389 billion
2016-03-30 12:14:00| Telecompaper Headlines
(Telecompaper) Sharp and Hon Hai Precision Industry have reached agreement on the latter's investment in Sharp. An initial agreement was first announced at the end of February, and it took a month for the companies to agree to the final terms. Under the deal, Hon Hai and its unit Foxconn will subscribe to JPY 288.8 billion in new common shares issued by Sharp, giving the Taiwanese company a 66 percent stake. The price per share is JPY 88, a significant discount to Sharp's more recent range of around JPY 130. Hon Hai will also acquire JPY 100 billion in new class C preferred shares in Sharp. These can be converted at a ratio of 1:100 from 01 July 2017. Further details of the agreement, such as the role of Sharp's creditors, were not disclosed.
Tags: sharp
billion
agrees
takeover
Category:Telecommunications