Deals
Japan Display Said to Be Close to $886 Million INCJ Rescue
- Company may sell preferred shares to INCJ to avoid dilution
- A joint announcement is expected as early as this month
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Japan Display Inc. jumped to a 9-month high after people familiar with the matter said the company may raise as much as 100 billion yen ($886 million) from a government-backed fund, 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.