Sharp's banks set to offer financial support for Foxconn deal - Mobile World Live

Sharp’s banks set to offer financial support for Foxconn deal

09 MAR 2016

Japanese banks Mitsubishi UFJ Financial Group and Mizuho Financial Group are willing to give additional aid to the takeover of Sharp by Foxconn, Reuters reported.

The banks “have extended the vast majority of Sharp’s JPY510 billion ($4.5 billion) in syndicated loans” due at the end of the month, extend the deadline and are considering an additional commitment line, the report said.

Sharp has a total JPY700 billion in interest-bearing debt.

A decision on the deal worth $5.8 billion was to be made last month but was delayed because Sharp sent Foxconn a list of contingent liabilities of around JPY300 billion.

Support from the banks is supposed to address these risks and the deal is now expected to be announced next week. It will be one of the most prominent investments by a foreign company in Japan.

All parties declined to comment on the matter.

Sharp first began talks with firms over its display unit after troubling results in October last year, blaming falling Chinese demand.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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