Japan Display Said Close to Winning $886 Million INCJ Bailout
- Company may sell preferred shares to INCJ to avoid dilution
- A joint announcement is expected as early as this month
Japan Display Said Close to a Bailout
Japan Display Inc. may issue preferred shares to raise as much as 100 billion yen ($886 million) from a government-backed fund, according to people familiar with the matter, a deal that amounts to a bailout of the struggling display maker.
The Tokyo-based supplier of screens to Apple Inc. has explored ways to win a cash injection from Innovation Network Corp. of Japan, its largest shareholder. Both sides are now leaning toward a sale of preferred stock to avoid diluting common stock-owners, the people said. The capital raised would go toward the development of displays for cars and next-generation smartphone screens, according to the people, who asked to not be identified because the discussions are private.