Foxconn to reduce offer for Sharp by around $900 million: Jiji

A Sharp Corp showroom is seen in Tokyo in this January 10, 2009 file photo.

Reuters/Stringer/Files

Taiwan’s Foxconn is likely to reduce its capital injection into embattled Japanese electronics firm Sharp Corp (6753.T) by around 100 billion yen ($898 million), from an initial plan of 489 billion yen, Japan’s Jiji News reported on Monday.

Last month, Sharp said it would issue around $4.4 billion worth of new shares to give Foxconn a two-thirds stake, but the Taiwanese electronics company put its takeover bid on hold at the last minute due to what sources said was the discovery of previously undisclosed liabilities.

Foxconn is reviewing the bid given concerns about future losses as well as on deterioration in Sharp’s earnings in the financial year to March 31, Jiji reported.

Foxconn, formally known as Hon Hai Precision Industry Co (2317.TW), will lower the purchase price of new share offers from Sharp from a planned 118 yen per share, while retaining the plan to own two-thirds stake in Sharp, Jiji added.

Sharp aims to hold a board meeting to decide on the new rescue deal by the end of month, the news wire said.

Sharp was not immediately available for comment.

(Reporting by Hideyuki Sano and Ritsuko Ando; Editing by Himani Sarkar)