Foxconn throws Sharp a lifeline

Foxconn throws Sharp a lifeline

Taiwanese Hon Pai Precision Industry, known as Foxconn, is allegedly willing to give ailing Japanese electronics company Sharp a new future.

Saved from bankruptcy twice

Over the past three years, Sharp had to be saved from bankruptcy twice as huge competition in China led to huge losses. Over the past fiscal year alone, it had a 222 billion yuan loss, which is 1.684 billion euro at current exchange rates. It only managed to survive after it went through a painful restructuring plan and additional funds brought in by Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and the state fund Japan Industrial Solutions.

 

Its lifeline may now come out of Taiwan: electronics manufacturer Foxconn would be willing to acquire Japanese competitor Sharp. CEO Terry Gou believes he can bring the company back to profitability in 2 years' time.

 

Japanese press agency Kyodo says Gou would be willing to part with 300 billion yen (2.276 billion euro), which is 50 % above the company's stock value. However, Gou would want to push through a thorough restructuring plan, including a management shuffle and the departure of president Kozo Takahashi.

Tags: