Foxconn Technology Group and Sharp Corp. (6753) will continue talks after the deadline to complete an investment agreement made a year ago passed today.
Payment from the Taiwanese electronics group was not made by the deadline, and Sharp will review the amount and terms, including examining other funding methods, the Osaka-based company said in a statement today.
Sharp, the unprofitable maker of Aquos TVs, display panels and refrigerators, on March 27 last year announced Foxconn group companies would buy a 9.9 percent stake for 66.9 billion yen ($709 million). Foxconn’s billionaire founder Terry Gou invested 66 billion yen of his own funds to buy a stake in the Osaka- based company’s TV-panel unit, later renamed Sakai Display Products Corp.
Both companies have been unable to resolve differences about control and no agreement is expected in the near term, two people familiar with the talks told Bloomberg News, asking not to be identified as the talks are private.
Sharp and Foxconn will continue discussing tie-ups which may or may not include a share sale to Foxconn under different terms, said Miyuki Nakayama, a Sharp Tokyo-based spokeswoman.
Sharp’s offer period for 121.6 million new shares at 550 yen each ran from May 31 to March 26, the Japanese company said in a statement at the time.
In November, Sharp widened its full-year loss forecast to 450 billion yen and said there was “material doubt” about its ability to survive. Since then, the television maker has agreed to sell stakes to Qualcomm Inc. (QCOM) and Samsung Electronics Co.
Laura Liu, a spokeswoman for Foxconn’s flagship Hon Hai Precision Industry Co., declined to comment.
To contact the editor responsible for this story: Robert Fenner at firstname.lastname@example.org