Sharp Corp. has asked major US chipmaker Intel Corp. to invest about 30 billion yen (US$376 million) in its bonds as part of its efforts to strengthen the struggling electronic maker's deteriorating financial base, it has been learned.
The cost of the bonds, which Sharp hopes to reach an agreement with Intel on this month, may be reviewed, as Intel's potential investment ratio is set to rise due to a drop in Sharp's total market value to 168.8 billion yen as of Tuesday's closing, sources said.
The two makers, which had been in talks over the subscription of the bonds, have been jointly developing ultralight notebook computers using Sharp's energy-saving liquid crystal display IGZO panels and Intel semiconductors.
As both companies have been selling the technologies to PC manufacturers worldwide, a strengthening of Sharp's financial base would also bring potential benefits to Intel.
Sharp's consolidated after-tax deficit is estimated to reach 450 billion yen in fiscal 2012, further reducing its financial strength.
This autumn, Sharp received a guarantee for 360 billion yen syndicated loan from its major creditor banks, including Mizuho Corporate Bank.
However, with securities worth about 200 billion yen to be redeemed in September 2013, Sharp will have to make further efforts to secure funds.
Sharp also is seeking financial support from other business partners, including US semiconductor manufacturer Qualcomm Inc.
The company's talks with Intel and the other firms may shift to discussing mainly capital injections. Sharp also will continue talks over a tie-up with Taiwan's Hon Hai Precision Industry Co., the sources said.
US$1 = 80 yen
Post a Comment
Post a Comment