Following months of back and forth negotiation, Foxconn has finally acquired Sharp Corporation of Japan.
According to Bloomberg News, TaiWan-based Foxconn Technology Group will get a 66% stake of Sharp for 88 yen (US $0.78) per share upon the completion of the acquisition.
Foxconn Technology Group, the parent company of Taiwan’s Hon Hai Precision Industry, will eventually pay 389 billion yen (US $3.5 billion) for a controlling stake in Sharp, instead of its original offer of 489 billion yen (US $4.35 billion) a month ago.
Foxconn Group Chairman Terry Gou is said to be seeking to transform Sharp from a contract manufacturer into a company that will not only make key components and assemble devices, but also sell electronics products to consumers. “We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights,” Gou said in a statement.
Hideki Yasuda, an analyst at Ace Research Institute in Tokyo, commented, “Finally, it’s decided. This is positive for Sharp, although it’s hard to imagine that Foxconn won’t have to keep providing funds.”
Sharp said it expects to report an operating loss of 170 billion yen (US $1.51 billion) for its fiscal year that ends on March 31. Previously it had said that it had expected a profit of 10 billion yen (US $0.089 billion).
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