The largest international deal in the IT market in Japan: Foxconn decided to buy out 66% of Sharp for $ 3.5 billion
The Taiwanese company Hon Hai Precision Industry ( Foxconn brand) and the Japanese corporation Sharp have finally agreed on a deal. Foxconn will buy back 66% of the corporation’s shares for $ 3.5 billion. The amount of the transaction was less than originally planned.
A month ago, it should have been $ 6.2 billion. Then it dropped to $ 4.3 billion.
Sources TechCrunch claim that today, March 30, the company will hold a meeting of the Board of Directors in order to obtain approval for the deal, which will be officially signed the next day - March 31.
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Companies were already close to signing the deal last month, but Foxconn decided to postpone it after reviewing previously unknown details about the affairs of the Japanese corporation.
In recent years, Sharp has given up a significant share of the display market to competitors from South Korea and China. In addition, the company's profit from the sale of mobile phones has significantly decreased - it was once one of the most profitable sectors for a Japanese corporation.
Sharp also claimed the state investment fund of Japan Innovation Network Corporation of Japan ( INCJ ), which is already one of the shareholders of the company.
However, the news about Foxconn’s plans to buy back Sharp shares had a dramatic effect on the value of the shares of the Japanese corporation - its quotes immediately rose by 23%. Foxconn's offer turned out to be more interesting for Sharp than INCJ fund terms.
For Foxconn, the deal is strategic. Companies need Sharp technology to expand their business. In particular - for the development of the production of energy-saving monitors. In addition, it will make cooperation with Apple - its largest customer - more fruitful, and also attract new customers. Foxconn is China's largest collector and a leading global electronics manufacturer. The company cooperates with American and European manufacturers. Foxconn is among the ten largest employers in the world.
The purchase of Sharp shares will be the largest foreign company in the history of Japan's acquisition of IT assets.
In the Telegram (Grigory Bakunov channel from Yandex) a comment appeared on the transaction:
A month ago, it should have been $ 6.2 billion. Then it dropped to $ 4.3 billion.
Sources TechCrunch claim that today, March 30, the company will hold a meeting of the Board of Directors in order to obtain approval for the deal, which will be officially signed the next day - March 31.
')
Companies were already close to signing the deal last month, but Foxconn decided to postpone it after reviewing previously unknown details about the affairs of the Japanese corporation.
In recent years, Sharp has given up a significant share of the display market to competitors from South Korea and China. In addition, the company's profit from the sale of mobile phones has significantly decreased - it was once one of the most profitable sectors for a Japanese corporation.
Sharp also claimed the state investment fund of Japan Innovation Network Corporation of Japan ( INCJ ), which is already one of the shareholders of the company.
However, the news about Foxconn’s plans to buy back Sharp shares had a dramatic effect on the value of the shares of the Japanese corporation - its quotes immediately rose by 23%. Foxconn's offer turned out to be more interesting for Sharp than INCJ fund terms.
For Foxconn, the deal is strategic. Companies need Sharp technology to expand their business. In particular - for the development of the production of energy-saving monitors. In addition, it will make cooperation with Apple - its largest customer - more fruitful, and also attract new customers. Foxconn is China's largest collector and a leading global electronics manufacturer. The company cooperates with American and European manufacturers. Foxconn is among the ten largest employers in the world.
The purchase of Sharp shares will be the largest foreign company in the history of Japan's acquisition of IT assets.
In the Telegram (Grigory Bakunov channel from Yandex) a comment appeared on the transaction:
They have long been looking for a way to enter the consumer market - Foxconn is not a brand for normal people. And now two things are happening right away: 1. Apple phones are getting 20% more details belonging to Foxconn (due to Sharp screens, for example); 2. on the market there are potentially new devices under the Sharp brand (made at Foxconn factories).
Source: https://habr.com/ru/post/299762/
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