Sharp, Foxconn to sign takeover deal next week
TOKYO: Sharp Corp. and Taiwan's Foxconn are set to sign a takeover deal next week after repeated delays, with the two sides set to agree on a smaller bailout than originally planned for the troubled Japanese electronics maker, two people familiar with the talks said on Saturday.
The two companies will hold board meetings on Wednesday to approve the deal and officially sign a deal the following day, said the two people. Both of the people declined to be identified as they are not authorized to speak to the media. A Sharp spokesman declined to comment, while Foxconn officials were not immediately available for comment. Foxconn, formally known as Hon Hai Precision Industry Co., is set to cut its earlier 489 billion yen ($4.3 billion) offer for newly issued Sharp shares by about 100 billion yen, the people cited earlier said.
The companies had come close to signing a deal last month but Foxconn hit the pause button following revelations of previously undisclosed liabilities at the Japanese company. The deal would be the largest acquisition by a foreign company in Japan's insular technology sector. In choosing to negotiate with Foxconn, Sharp turned down a rival offer by a statebacked fund. It would also boost Foxconn's position as Apple's main contract manufacturer and provide Sharp with funds to start mass-producing organic light-emitting diode ( OLED) screens by 2018, around the time Apple is expected to adopt the next-generation displays for its iPhones.