Foxconn Technolgy makes case for Sharp takeover
and Bloomberg L.P.
Foxconn Technology Group Chairman Terry Gou met with Sharp Corp.’s management at the Japanese company’s headquarters Saturday to make his case to take control of the electronics maker, the Yomiuri newspaper reported.
Gou said after the two-hour meeting in Osaka that there would be synergy between the two companies and that he would continue Sharp’s history, the newspaper reported. The Foxconn chairman had planned to make a bid of about 660 billion yen ($5.4 billion) for the Japanese company, according to a person familiar with the matter who spoke before the meeting took place.
The offer is designed to beat out an alternative deal with a Japanese government fund and would include about 390 billion yen to buy new shares for a controlling stake, said the person, who couldn’t be identified because the information isn’t public. About 225 billion yen will be used to buy preferred stock in Sharp, primarily from the company’s two major banks, and another 45 billion yen will be used to buy land from the company.
A call to Sharp’s headquarters in Osakaon Sunday outside business hours wasn’t answered.
Sharp has been discussing competing bailout plans with Foxconn and the Innovation Network Corp. of Japan. Though the Taiwanese company is offering more money, Sharp is leaning toward a deal with INCJ, which would keep its technology within Japan and allow it to cooperate more closely with domestic companies, people familiar with the matter have said.INCJ Deal INCJ may invest about 300 billion yen in Sharp, people familiar with the matter have said. Under INCJ’s offer, the banks would hand over the preferred shares for free, the Nikkei reported, without citing anyone.
Under the deal, INCJ would lead a push to restructure Sharp’s solar business, streamlining production facilities and integrating the unit with Solar Frontier K.K., the Nikkei reported.
Solar Frontier is a wholly owned unit of Showa Shell Sekiyu K.K.
Sharp’s American depositary receipt rose as much as 13.4 percent to $1.27 and closed at $1.25 on Friday.