Sharp accepts much lower Foxconn take-over bid

Sharp accepts much lower Foxconn take-over bid

Ailing Japanese electronics concern Sharp seems to have put an end to its acquisition soap, with its new owner, Foxconn, paying a lot less than originally offered.

Not 5.3 billion, but "only" 3 billion euro

Taiwanese Foxconn, known as the manufacturer for many Western companies like Apple, has agreed a deal to acquire Sharp. In the end, a sum of 389 billion yen (some 3 billion euro) was enough to obtain a 66 % stake in the ailing Japanese electronics concern.

 

At first, Foxconn (its official name is Hon Hai Precision Industry) offered more than 5 billion euro, but postponed the deal after rumours surfaced that Sharp was in more trouble than it thought, as it still had financial obligations towards its debtors. Foxconn demanded to have insight into the situation and lowered its bid (a lot) to take that situation into account.

 

Yesterday, both companies announced Sharp accepted the lower bid and that everything would be signed on Saturday. Once signed, Sharp will become the very first major Japanese electronics company owned by a foreign party.