Sharp Said to Target 100 Billion Yen Fundraising on Share Sale
Sharp Corp. (6753) plans to raise about 100 billion yen ($1 billion) through public and private share sales in September, according to people familiar with the matter.
Japan’s largest maker of liquid-crystal displays will seek most of the funding through a public offering, the people said, asking not to be identified because the information isn’t public. Makita Corp. (6586) and Lixil Group Corp. may buy stakes worth 10 billion yen each, one of the people said.
Sharp is considering ways to raise capital and no decisions have been made, the Osaka-based company said in a statement today. The company, which is a supplier for Apple Inc., has cut jobs and sold stakes to Samsung Electronics Co. (005930) and Qualcomm Inc. to raise cash after posting 921 billion yen of losses in the past two financial years.
The share sale announcement will probably be made later this month, the people said. Sharp reports first-quarter earnings today at 3 p.m. in Tokyo.
The Japanese electronics maker is in talks with Denso Corp. to invest as much as 2 billion yen, a person familiar with the plans said July 23.
Nikkan Kogyo newspaper reported earlier that Sharp plans to raise 100 billion yen by mid-September through a public offering and individual stakes to companies including Lixil and Makita.