Samsung Says Offer for Sharp’s Photocopier Unit Rejected

so much for all the naysayers, seems like the offer maybe was not good enough!!!

I'll try to find more

Simple math tells us that Sharp recently rec'd $120M USD from Qualcomm and $110M USD from Samsung totaling $231M USD. Six months from now Sharp has to come up with $2.1B USD or else the sh*t will hit the fan for Sharp.

Not that I am a high finance expert by any means but at least the acknowledgement by Sharp that they are interested in receiving bids on the copier division means that it is not a sacred cow for Sharp.

Somewhere I read that any Japanese Corporation will do what is has to do to stay solvent.

If Samsung really wants this Sharp copier business they have more money than they know what to do with. Like in any negotiation, as the deadline approaches positions can change.

this will put the whole industry on edge tomorrow and I wonder how sharp USA will spin this one. They did a good job on the other one, however this is now twice is 7 months. Like other P4P'ers have stated, it may not be up to Sharp execs only, the banks have a say in this.

Can't wait to hear reactions tomorrow.

Samsung often makes statements in their dealer meetings that their plan is to become the #1 player in any industry they choose to target. Samsung has made big advances in the imaging industry in the last five years and an acquisition of Sharp would obviously advance that agenda.

TOKYO (Reuters) - Sharp Corp rejected an offer by Samsung Electronics Co. to buy its copier and printer unit as part of a deal that will see Samsung invest $110 million in return for a 3 percent stake.

"We did get a proposal from Samsung, but we declined," said Sharp spokeswoman Miyuki Nakayama. She would not say how much Samsung offered and why Sharp refused.

Sharp needs to repay a $2.1 billion convertible bond due in September and selling the profitable copier business would help raise cash, but it would also diminish the company's cashflow.

The copier unit manufactures photocopiers, printers and fax machines for offices.

Sharp in December won an agreement from Qualcomm to invest as much as $120 million. Analysts expect the company to resort to fresh equity financing to bolster its cash reserves before September.

(Reporting by Tim Kelly; editing by Miral Fahmy)

One of the interesting sides to this would be what would happen to Sharp's direct operations under a Samsung take over of the copier operation. Samsung in Canada has been extremely adamant that they do not do direct sales in any of their operations, consumer or BtoB. Interesting to watch these global operations shift.

quote:

Originally posted by lep524:
One of the interesting sides to this would be what would happen to Sharp's direct operations under a Samsung take over of the copier operation. Samsung in Canada has been extremely adamant that they do not do direct sales in any of their operations, consumer or BtoB. Interesting to watch these global operations shift.

Samsung has been looking for a way into the North american market going on 5 years now. they own 90% of the MFP/Printer market in Korea (Look it up). If Samsung gets the business from Sharp they will have a small but established infrastructure that will give them a foothold into North America.

With all the doom and gloom out reports from the analysts these days its good to hear something new and exciting.

Can you say Sharpsung!

There were two additional reports today that stated "Sharp MAY sell Copier Division to Samsung", I'll try to post here.

Sharp May Sell Copier Operations to Samsung
03/12/2013| 11:06pm US/Eastern
TOKYO--Sharp Corp. (>> Sharp Corporation) is considering selling its copier operations to Samsung Electronics Co. (SSNHY), the Sankei Shimbun reported in its Wednesday morning edition.

The paper said that Samsung may be interested in using the operations, currently ranked fifth globally, to complement its smartphone and other information systems operations.

Last week Samsung said it signed a deal to buy a 3.0% stake in Sharp for 10.4 billion yen ($110 million) as the embattled Japanese electronics maker scrambles to raise funds and secure customers for its liquid-crystal displays.

As we all know March 31st is the real deadline. I wouldnt be surprised if the deal will be done before then just for a bit more YEN!

Samsung is signing up some premier dealers all of a sudden. They never went direct to dlrs (ony thru dist) but from the looks of 2 recent press releases, they are now. LDI in NY, NY & R J Young in Tenn. It seems like Samsung's business model is changing. Makes you wonder........

Thought I saw a blurb on TV this morning about how Qualcomm is backing out from the Sharp deal a few months ago because Sharp can't deliver for some reason. Did anyone else see that? (I think on Bloomberg News)

I must admit I'm rather excited to see Samsung come into North America and shake things up a little.

With Tod Pike the ex Canon Pres running Samsung now, they are going to be way more agressive in the US than in the past. (The 2 large dealers they recently signed up are long time Canon Dlrs)

quote:

Originally posted by yeti:
I must admit I'm rather excited to see Samsung come into North America and shake things up a little.

Me too. I've got three new demo machines sitting here I've been playing with. To say they are going to shake things up is an understatement. The features and pricing are mind blowing.

Yoda:

Here is that release, still tough times for Sharp.

After failing to advance far enough toward a manufacturing process goal, Sharp says that it will miss a March 29 deadline to receive the second half of a $120 million investment from chipmaker Qualcomm.

In December, the ailing Japanese electronics maker said it reached a partnership with U.S.-based Qualcomm, which agreed to invest $120 million in a project to jointly develop display panels. However, as reported by Reuters, Qualcomm's conditions included the stipulation that Sharp meet strict deadlines to fabricate power-conserving screens, and as a result, Sharp will not yet be granted the remaining $60 million the San-Diego based firm originally pledged.

In addition, Qualcomm has insisted that Sharp must make an operating profit in the second half of 2013, and at least $1.05 billion of net assets have to be in place.

The screens that Sharp has to produce were developed in conjunction with Pixtronix, a subsidiary of Qualcomm. The panels are focused on conserving power through Pixtronix's low-power MEMS (micro electromechanical systems) displays and Sharp's IGZO (indium gallium zinc oxide) technology.


Related stories:
Foxconn won't be investing in Sharp after all
Is Sharp on its last legs?
Sharp to take out $313 million in loans for ailing business -- report
Sharp wouldn't sell copier, printer business to Samsung -- report


Instead, both firms are falling back to a deadline of June 30, according to Reuters. Although this gives Sharp time to get its act together, if the electronics maker does not produce the jointly developed screens in time for the second deadline, it is likely to put even more financial pressure on the already struggling company.

This month, South Korean firm Samsung agreed to invest 10.4 billion yen, or about $111.3 million in Sharp for roughly a 3 percent stake in the company. In a press release announcing the deal, Samsung said the investment was aimed at building up "mutual trust" in the LCD display business as well as offering Sharp a little help getting out of its financial mire -- although it won't be nearly enough. Sharp currently supplies display panels for Samsung products.

Sharp must pay off a $2.1 billion convertible bond in September this year, and reports suggest that the Japanese company has been forced to take out bank loans totaling $313 million to try and stay afloat.

Samsung eyed Sharp copier biz in tieup talks

Kyodo



Mar 14, 2013
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OSAKA – Struggling electronics maker Sharp Corp. rejected an offer from Samsung Electronics Co. to buy its copier business during talks to form a capital tieup, sources said Wednesday.

It’s unknown how much Samsung offered. The South Korean company, which sees copiers as the next growth business after smartphones, could make another buyout offer, the sources said.

Sharp regards the copier business as one of its core operations in its restructuring plan. The copier operation generates a profit on an operating basis, unlike its money-losing liquid crystal panel business.

Samsung apparently intended to expand its copier business through the acquisition of Sharp’s operation.

Under their capital and business alliance agreement announced earlier this month, Sharp said it will accept about ¥10 billion in investment from Samsung this month and increase its supply of LCD panels to the South Korean electronics giant.

quote:

The South Korean company, which sees copiers as the next growth business after smartphones...

Really? maybe there is a lot of sudafed being converted to meth in the minds of Samsung. Sorry Minds of Minolta right, they are gone too. Oh well I digress.....

The A3 manufacturers have their antennas out listening to what Samsung has to say and offer and will react defensively to maintain market share. Samsung's new product line only goes up to 35 cpm in Colour A3, relegating them to an add on product line for any dealer. If a dealer gets too far out of line with Samsung, assumed discounts on 55 cpm Colour copiers might not be approved.

quote:

assumed discounts on 55 cpm Colour copiers might not be approved.

I get everything you are saying up this point.

Prediction: Samsung will cut into many Ricoh dealers making quota......one way or the other.

A dealer might have grown accustomed in the past to receiving certain discounts on new hardware sales. If a dealer starts cherry picking between two product lines, of which one product line only goes up to 35 cpm Colour, a manufacturer might decline to offer special pricing on faster models if they do not see their whole product line being quoted to customers.