Japan Display discussing factory sale to Apple, Sharp


Japan Display's logo is seen at a display of its products at its headquarters in Tokyo, Japan. - Reuters filepic

TOKYO: Japan Display Inc is discussing the sale of its main smartphone screen factory to Apple Inc and Sharp Corp for 70 billion to 80 billion yen ($730 million-$820 million), the Nikkei business daily reported on Friday.

The cash-strapped company had said this month that financial support of $200 million promised by "a customer", which sources said was Apple, may come in the form of purchasing equipment at the plant.

Those discussions appear to have switched to the sale of the entire factory, the Nikkei said. Japan Display owes Apple more than $800 million for the $1.5 billion cost of building the plant four years ago.

Shares of Japan Display rose as much as 4.1% on Friday morning.

Sharp confirmed in a statement it had received a request from a client to consider the purchase of Japan Display's Hakusan plant. "We are carefully considering it, reviewing the impact that any purchase would have on our earnings, and whether and how much risk it would entail."

Japan Display said earlier this month that it plans to receive up to 90 billion yen in financial support from Ichigo Asset Management, giving effective control to the Japanese asset manager.

Taiwanese contract electronics manufacturer Wistron Corp <3231.TW> is also set to take part in the bailout.

Japan Display has been losing money for the past five years and reported its 11th consecutive quarterly net loss last month on sluggish display sales and restructuring costs. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Japan , Display , Apple , factory , sell , Nikkei , Sharp ,

   

Did you find this article insightful?

Yes
No

Next In Business News

Biden's US$1.9tril aid bill wildly popular with Americans -- except Republicans in Congress
Boeing to pay penalty to FAA over safety lapses
Oil mixed, US crude hits highest since 2019
Wall Street ends sharply lower, tech selloff weighs as bond yields climb
GameStop jumps nearly 19%; 'meme stocks' fade after another wild ride
Genting registers RM1bil loss in 2020, flags highly uncertain year ahead
LBS Bina Q4 profit up, sales exceed full year target�
AirAsia Group delays releasing earnings to end-March
S P Setia exceeds targeted sales amidst Covid-19 pandemic
I-Bhd stays profitable in 2020

Stories You'll Enjoy


Vouchers