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Thus, the transaction which, according to the Foxconn itself, was to be held in February of this year, will not be concluded before the end of March. News agency Bloomberg, citing unnamed sources reported that the Taiwanese side asked Sharp to updated financial data.
At the end of the current fiscal year, which runs until the end of March 2016, Sharp still expects an operating profit of 10 billion yen on sales of 2.7 trillion yen. The analysts, which refers to news, expect an operating loss of 24 billion yen.
Recall that Sharp's board of directors in February unanimously decided to accept Foxconn’s offer to purchase the company's assets of about 700 billion yen ($ 6.2 billion). Sharp is ready to sell Foxconn 65,9% of its shares for $ 4.3 billion. The remaining amount will be made up by additional investments.
However, the Taiwanese party almost immediately postponed its final decision to buy because of emergence of additional details about Sharp’s debt. Foxconn got into possession a list of 100 possible Sharp’s liabilities totaling 350 billion yen ($ 3.1 billion). This is not the company’s current debts, but only risks that can confront the Japanese vendor under the most unfavorable development of the situation.
Insiders also report that Foxconn previously did not have this information, so hoped to conclude a deal with Sharp to the end of February.
Representatives of the Japanese side, according to sources, did not expect the document to fall into hands of potential buyers.
Later, according to media, Foxconn studied a list of risks and concluded that the potential liabilities amount to much less than 300 billion yen ($ 2.6 billion). Insiders pointed out that there is no more obstacles to the agreement’s conclusion. Now, however, Foxconn decided to wait.
Foxconn raised the question to invest in Sharp three years ago. In March 2012, Foxconn announced the purchase of nearly 10% stake in Sharp for 66.9 billion yen ($ 544 million), but the deal was never concluded because of the rapid collapse of quotations on the background of the Japanese vendor’s poor financial results.
Sharp, a little while ago considered the best supplier of Apple, in recent years has lost significant market share due to increased competition from LG Display Co Ltd, Japan Display Inc. and other manufacturers of displays.
source: bloomberg.com
At the end of the current fiscal year, which runs until the end of March 2016, Sharp still expects an operating profit of 10 billion yen on sales of 2.7 trillion yen. The analysts, which refers to news, expect an operating loss of 24 billion yen.
Recall that Sharp's board of directors in February unanimously decided to accept Foxconn’s offer to purchase the company's assets of about 700 billion yen ($ 6.2 billion). Sharp is ready to sell Foxconn 65,9% of its shares for $ 4.3 billion. The remaining amount will be made up by additional investments.
However, the Taiwanese party almost immediately postponed its final decision to buy because of emergence of additional details about Sharp’s debt. Foxconn got into possession a list of 100 possible Sharp’s liabilities totaling 350 billion yen ($ 3.1 billion). This is not the company’s current debts, but only risks that can confront the Japanese vendor under the most unfavorable development of the situation.
Insiders also report that Foxconn previously did not have this information, so hoped to conclude a deal with Sharp to the end of February.
Representatives of the Japanese side, according to sources, did not expect the document to fall into hands of potential buyers.
Later, according to media, Foxconn studied a list of risks and concluded that the potential liabilities amount to much less than 300 billion yen ($ 2.6 billion). Insiders pointed out that there is no more obstacles to the agreement’s conclusion. Now, however, Foxconn decided to wait.
Foxconn raised the question to invest in Sharp three years ago. In March 2012, Foxconn announced the purchase of nearly 10% stake in Sharp for 66.9 billion yen ($ 544 million), but the deal was never concluded because of the rapid collapse of quotations on the background of the Japanese vendor’s poor financial results.
Sharp, a little while ago considered the best supplier of Apple, in recent years has lost significant market share due to increased competition from LG Display Co Ltd, Japan Display Inc. and other manufacturers of displays.
source: bloomberg.com
