Foxconn Lowering its Offer to Acquire Sharp
Over the weekend, Reuters reported that Taiwanese electronics contract manufacturing company Foxconn planned to reduce their offer to purchase Japanese electronics maker Sharp Corporation. Foxconn initially planned to purchase Sharp for around 489 billion yen ($4.4 billion), Reuters reported, citing the Yomiuri newspaper.
At the time, as we reported on Dealerscope, there were a number of questions and even more uncertainties around the reported deal, as Foxconn was denying that a deal had been reached. The reason behind Foxconn’s tepidness at the time and the resulting lower offer now is that the company is concerned about the financial risks and potential liabilities at Sharp and its business outlook.
Reuters followed up its report early Monday morning, saying that the deal is being reduced by around 100 billion yen ($898 million), citing Japan’s Jiji News. Foxconn will lower the per-share purchase price while also retaining its plan to own two-thirds stake in Sharp, Jiji reported. The report added that Sharp planned to hold a board meeting to decide on the new takeover deal by the end of the month.
Sharp was not immediately available to comment, Reuters said.