Kyocera Corp (6971.T)has a very high current share price of 6971 Yen, about average for the last 12 months. By comparison Sharp is 178 Yen, 1/3rd the value of a year ago. Toshiba is 282 Yen, 90% of the value a year ago.
Kyocera is in partnership with several other Japanese Corp to build a 70MW solar power project at a cost of $307M USD. This would become Japan's largest plant supplying approx 22,000 homes.
Kyocera just established a special purpose company in partnership with a leasing company which will be engaged in the sale of electricity through solar power.
Interest in alternative energy has risen in Japan since the radiation crisis triggered by the destruction of Fukushima nuclear power plant in last year's earthquake and tsunami.
All but one of the nation's 54 reactors are shuttered, with the government struggling to persuade a wary public that it is safe to restart them.
Solar capacity in Japan has risen to more than 3,500 megawatts, helped by government subsidies for solar panels on homes, though it meets less than 1 percent of the nation's power demand and the capacity is less than a quarter that of Germany.
Kyocera, a manufacturer of solar panels, could need Sharp's solar power business as it is going to have to supply a lot of solar panels to meet the needs its $307M project.
Maybe Sharp copiers are not the primary interest of Kyocera?
In all honesty I dont think Sharp wants to sell or even think about selling its copier unit. I think the bean counters may be telling them they must to raise enough money to just stay alive or Han Hai is telling them to dump it, or Han Hai leaked a story to get the share price down or the bankers that loaned them money are telling them to sell it to get their money back. Who knows.
One thing for certain. Someone, somewhere connected to or working with or for Sharp mentioned it to a reporter! I dont think this guy just made it up out of thin air! If he did then that is totally wrong. So right now we are at he said, she said. Its silly.
One thing for certain. Someone, somewhere connected to or working with or for Sharp mentioned it to a reporter! I dont think this guy just made it up out of thin air! If he did then that is totally wrong. So right now we are at he said, she said. Its silly.
quote:One thing for certain. Someone, somewhere connected to or working with or for Sharp mentioned it to a reporter! I dont think this guy just made it up out of thin air! If he did then that is totally wrong. So right now we are at he said, she said. Its silly.
I'm with you on this, I doubt the reporter from Nikkei made this up.
This is now a different reporter and news outlet? I think this says the same thing no?
But at the end it says the opposite?
I'm confused.
quote:Therefore, Sharp strongly denied news reports and speculation that it may sell such divisions or spin off the Kameyama plant, saying such actions would run counter to its business reconstruction efforts.
But at the end it says the opposite?
quote:
Unless Sharp is able to quickly rebuild flagship businesses through the tie-up, it is highly likely the firm will be forced to cut more jobs or sell profit-making divisions.
I'm confused.
I see it as if they do NOT get the financial help they need from the banks and the Hon Hai offer is now almost 2/3rds less than what is was, then Sharp maybe forced by Hon Hai investors to sell off profitable operations to raise cash.
news updated for Sharp,
http://in.reuters.com/article/...dINL4E8JK2J520120820
* Sharp hires two consultants, including PwC, for report - sources
* Sharp's debt totals $16 billion
* Sharp shares fall 5.4 percent to 174 yen in Tokyo
By Taiga Uranaka and Nobuhiro Kubo
TOKYO, Aug 20 (Reuters) - Japan's embattled TV maker Sharp Corp will submit an asset appraisal report to its banks next month they will use to identify businesses the century-old company has to sell in return for funding, sources at the lenders said.
Sharp, with debt of 1.25 trillion yen ($16 billion), is scrambling for money to refinance as much as 360 billion yen of short-term commercial paper and a 200 billion-yen convertible bond maturing in September next year. While the unprofitable company may balk at giving up parts of its business that ranges from washing machines to solar panels, it can ill afford to resist a bank-led fire sale.
"I don't think Sharp holds much decision-making authority anymore," said Katsuhide Takahashi, a credit-sector specialist at Citigroup in Tokyo. "Sharp has a lot of pride, and now its reality has been turned upside down, it's not responding quickly enough."
Mizuho Financial Group and Mitsubishi UFJ Financial Group will provide several tens of billions of yen in stopgap financing until the report, being compiled by two consultants, including PricewaterhouseCoopers, is ready, the sources said on condition they weren't identified.
So far, Sharp has said it is considering various options to restructure its business in a bid to underpin its finances, without giving details. Its banks may wait until the consultants deliver their assessment of what Sharp owns, what it is worth, and where its liabilities lie before making specific demands on what it should sell.
"At the moment we have no comment," said Machiko Watanabe, a spokeswoman for PricewaterhouseCoopers.
Like rivals Sony Corp and Panasonic Corp, Sharp has been hammered by waning global TV demand and aggressive overseas competitors led by Samsung Electronics that are grabbing a bigger slice of a shrinking pie.
The creator of the electronic calculator, which has lost around $7 billion in market value this year, has warned it would report a 100 billion-yen operating loss this fiscal year, prompting ratings agencies to cut their credit ratings. The company said it will axe 5,000 jobs, about a tenth of its global workforce and its first redundancies in six decades.
FIRE SALE
Local media reports last week said Sharp will sell units ranging from its money-making copier business to its money-losing solar panel factory.
The level of funding needed will also depend on how much investment Sharp secures from Taiwanese partner, Hon Hai Precision Industry.
Hon Hai is renegotiating a planned 67 billion-yen investment in Sharp for a 10 percent stake that valued its shares at 550 yen. The stock since has fallen to below 180 yen, prompting Hon Hai to seek a lower price per share and a possible increase in its stake.
Hon Hai wanted 20 percent ownership of its fellow Apple Inc supplier for 200 yen per share, the Nikkei business daily reported on Friday, without saying where it obtained the information.
Sharp's shares fell 5.4 percent to 174 yen on Monday following a 13 percent jump on Friday on a splurge of local media reports of potential asset sales.
The Nikkei also said Sharp may sell its copier, air-conditioner and LED businesses. It identified potential buyers as Kyocera Corp, Daiwa House Industry Co and Daikin Industries Ltd. Sharp issued a statement through the Tokyo Stock Exchange denying the report.
Jiji News Agency reported the Osaka-based company was seeking a 50 billion-yen cash injection from sources including U.S. investment funds, Kyocera and Toshiba Corp.
Other media outlets said Sharp was asking for more than 100 billion yen for its solar panel plant in Sakai, western Japan, while other reports said the inventor of ever-sharp mechanical pencils may spin off its Kameyama plant, which makes LCD screens for Apple's iPad and latest iPhone.
Sharp's consumer electronics business accounts for almost two-fifths of revenue, with its home appliance business and a printers and cash registers unit making up a tenth of sales each. Its solar panel division is 8 percent of income, with the remainder of sales generated from LCD panels and other components.
The maker of Aquos TVs is mulling the sale of assets including TV assembly plants in Poland, Malaysia and Mexico, and office buildings in Tokyo, a company source told Reuters last week.
Sharp also holds around $500 million marketable securities in medical equipment maker Olympus Corp, flash memory chip maker Toshiba, audio-visual equipment maker Pioneer Corp and unlisted Eliiy Power Co, a lithium-ion battery joint venture.
http://in.reuters.com/article/...dINL4E8JK2J520120820
* Sharp hires two consultants, including PwC, for report - sources
* Sharp's debt totals $16 billion
* Sharp shares fall 5.4 percent to 174 yen in Tokyo
By Taiga Uranaka and Nobuhiro Kubo
TOKYO, Aug 20 (Reuters) - Japan's embattled TV maker Sharp Corp will submit an asset appraisal report to its banks next month they will use to identify businesses the century-old company has to sell in return for funding, sources at the lenders said.
Sharp, with debt of 1.25 trillion yen ($16 billion), is scrambling for money to refinance as much as 360 billion yen of short-term commercial paper and a 200 billion-yen convertible bond maturing in September next year. While the unprofitable company may balk at giving up parts of its business that ranges from washing machines to solar panels, it can ill afford to resist a bank-led fire sale.
"I don't think Sharp holds much decision-making authority anymore," said Katsuhide Takahashi, a credit-sector specialist at Citigroup in Tokyo. "Sharp has a lot of pride, and now its reality has been turned upside down, it's not responding quickly enough."
Mizuho Financial Group and Mitsubishi UFJ Financial Group will provide several tens of billions of yen in stopgap financing until the report, being compiled by two consultants, including PricewaterhouseCoopers, is ready, the sources said on condition they weren't identified.
So far, Sharp has said it is considering various options to restructure its business in a bid to underpin its finances, without giving details. Its banks may wait until the consultants deliver their assessment of what Sharp owns, what it is worth, and where its liabilities lie before making specific demands on what it should sell.
"At the moment we have no comment," said Machiko Watanabe, a spokeswoman for PricewaterhouseCoopers.
Like rivals Sony Corp and Panasonic Corp, Sharp has been hammered by waning global TV demand and aggressive overseas competitors led by Samsung Electronics that are grabbing a bigger slice of a shrinking pie.
The creator of the electronic calculator, which has lost around $7 billion in market value this year, has warned it would report a 100 billion-yen operating loss this fiscal year, prompting ratings agencies to cut their credit ratings. The company said it will axe 5,000 jobs, about a tenth of its global workforce and its first redundancies in six decades.
FIRE SALE
Local media reports last week said Sharp will sell units ranging from its money-making copier business to its money-losing solar panel factory.
The level of funding needed will also depend on how much investment Sharp secures from Taiwanese partner, Hon Hai Precision Industry.
Hon Hai is renegotiating a planned 67 billion-yen investment in Sharp for a 10 percent stake that valued its shares at 550 yen. The stock since has fallen to below 180 yen, prompting Hon Hai to seek a lower price per share and a possible increase in its stake.
Hon Hai wanted 20 percent ownership of its fellow Apple Inc supplier for 200 yen per share, the Nikkei business daily reported on Friday, without saying where it obtained the information.
Sharp's shares fell 5.4 percent to 174 yen on Monday following a 13 percent jump on Friday on a splurge of local media reports of potential asset sales.
The Nikkei also said Sharp may sell its copier, air-conditioner and LED businesses. It identified potential buyers as Kyocera Corp, Daiwa House Industry Co and Daikin Industries Ltd. Sharp issued a statement through the Tokyo Stock Exchange denying the report.
Jiji News Agency reported the Osaka-based company was seeking a 50 billion-yen cash injection from sources including U.S. investment funds, Kyocera and Toshiba Corp.
Other media outlets said Sharp was asking for more than 100 billion yen for its solar panel plant in Sakai, western Japan, while other reports said the inventor of ever-sharp mechanical pencils may spin off its Kameyama plant, which makes LCD screens for Apple's iPad and latest iPhone.
Sharp's consumer electronics business accounts for almost two-fifths of revenue, with its home appliance business and a printers and cash registers unit making up a tenth of sales each. Its solar panel division is 8 percent of income, with the remainder of sales generated from LCD panels and other components.
The maker of Aquos TVs is mulling the sale of assets including TV assembly plants in Poland, Malaysia and Mexico, and office buildings in Tokyo, a company source told Reuters last week.
Sharp also holds around $500 million marketable securities in medical equipment maker Olympus Corp, flash memory chip maker Toshiba, audio-visual equipment maker Pioneer Corp and unlisted Eliiy Power Co, a lithium-ion battery joint venture.
If Sharp shares continue to slide......175 yen now, last week 200 yen, that's a 10% drop in the last few days.
Today:
Sharp Corp. 6753 SHCAF extended its recent drop by 2.3%, with month-to-date losses now at 37%. A report out Tuesday said the firm may be planning to cut 3,000 more jobs on top of 5,000 layoffs already announced.
Today:
Sharp Corp. 6753 SHCAF extended its recent drop by 2.3%, with month-to-date losses now at 37%. A report out Tuesday said the firm may be planning to cut 3,000 more jobs on top of 5,000 layoffs already announced.
http://ca.reuters.com/article/...dCABRE87K00620120821
The company will submit an asset appraisal report to its banks next month that will identify businesses the century-old company has to sell in return for funding, sources at the company's lenders have told Reuters.
The company will submit an asset appraisal report to its banks next month that will identify businesses the century-old company has to sell in return for funding, sources at the company's lenders have told Reuters.
quote:Originally posted by yeti:
http://ca.reuters.com/article/...dCABRE87K00620120821
The company will submit an asset appraisal report to its banks next month that will identify businesses the century-old company has to sell in return for funding, sources at the company's lenders have told Reuters.
Nailed it. Its not up to Sharp anymore. They can deny all they want. Bankers are calling the shots now.
Thought this would be a fitting scene if Sharp Copiers goes bye-bye
(Reuters) - Sharp Corp's main creditors Mizuho Corporate Bank and Mitsubishi UFJ Financial Group are considering extending about 200 billion yen ($2.52 billion) in new loans to the struggling TV maker, Japanese media reported, sending its shares higher on Thursday.
The embattled company, with debt of 1.25 trillion yen ($16 billion), is considering selling assets and cutting jobs as it scrambles for money to refinance as much as 360 billion yen of short-term commercial paper and a 200 billion-yen convertible bonds maturing in September next year.
Mizuho, part of the Mizuho Financial Group, and Mitsubishi UFJ are set to lend about 130 billion yen at the end of August and another 100 billion yen next month and will seek collateral this time, unlike previous loans, media said.
The loans would come on top of the 60 billion yen in stopgap financing they provided to Sharp in July to help the company meet its debt requirements, various media outlets reported.
Shares in Sharp, which has shed more than a third of its value since the beginning of August, climbed 3.3 percent by the midday break, compared with a flat benchmark Nikkei average.
"Sharp is asking two major banks to consider an appropriate amount of loans," said company spokeswoman Miyuki Nakayama, but she declined to identify the banks involved as well as the amounts being considered.
Mitsubishi UFJ and Mizuho, which are both major shareholders of Sharp, have far more to lose by letting the company go bust than propping it up with additional loans.
With limited exposure to Europe's debt crisis, Japanese banks have weathered the global economic uncertainty far better than their peers in Europe and the United States.
Sharp, for its part, said it is doing its best to minimize its debt.
The company's spokeswoman said Sharp is looking into various measures such as disposing cross-holdings and accounts receivable, but did not give any more specifics on the considerations.
Sharp holds shares in several companies, including Pioneer Corp and Sekisui House Ltd.
Sharp, which supplies the screens used in Apple Inc's blockbuster iPhones, is grappling with its first layoffs in six decades.
The company is considering cutting a further 3,000 jobs on top of the 5,000 it has already announced, a source familiar with the discussion told Reuters, by selling two TV assembly plants to Taiwanese partner Hon Hai Precision Industry.
Sources at the company's lenders have said Sharp will submit an asset appraisal report to its banks next month that will identify businesses it has to sell in return for funding.
The loan amount would also depend on how much investment Sharp secures from Hon Hai, the world's leading contract electronics manufacturer, which previously agreed to buy about a 10 percent stake at 550 yen per share.
As Sharp's condition has weakened -- shares have fallen some 72 percent this year to 186 yen -- Hon Hai has moved to renegotiate the March deal under which it would have invested $844 million.
The Japanese company's revised restructuring plan is not likely to be finalized until September, bankers involved in the process have said. ($1 = 79.2500 Japanese yen)
(Reporting by Chang-Ran Kim and James Topham. Writing by Mari Saito; Editing by Ken Wills)
The embattled company, with debt of 1.25 trillion yen ($16 billion), is considering selling assets and cutting jobs as it scrambles for money to refinance as much as 360 billion yen of short-term commercial paper and a 200 billion-yen convertible bonds maturing in September next year.
Mizuho, part of the Mizuho Financial Group, and Mitsubishi UFJ are set to lend about 130 billion yen at the end of August and another 100 billion yen next month and will seek collateral this time, unlike previous loans, media said.
The loans would come on top of the 60 billion yen in stopgap financing they provided to Sharp in July to help the company meet its debt requirements, various media outlets reported.
Shares in Sharp, which has shed more than a third of its value since the beginning of August, climbed 3.3 percent by the midday break, compared with a flat benchmark Nikkei average.
"Sharp is asking two major banks to consider an appropriate amount of loans," said company spokeswoman Miyuki Nakayama, but she declined to identify the banks involved as well as the amounts being considered.
Mitsubishi UFJ and Mizuho, which are both major shareholders of Sharp, have far more to lose by letting the company go bust than propping it up with additional loans.
With limited exposure to Europe's debt crisis, Japanese banks have weathered the global economic uncertainty far better than their peers in Europe and the United States.
Sharp, for its part, said it is doing its best to minimize its debt.
The company's spokeswoman said Sharp is looking into various measures such as disposing cross-holdings and accounts receivable, but did not give any more specifics on the considerations.
Sharp holds shares in several companies, including Pioneer Corp and Sekisui House Ltd.
Sharp, which supplies the screens used in Apple Inc's blockbuster iPhones, is grappling with its first layoffs in six decades.
The company is considering cutting a further 3,000 jobs on top of the 5,000 it has already announced, a source familiar with the discussion told Reuters, by selling two TV assembly plants to Taiwanese partner Hon Hai Precision Industry.
Sources at the company's lenders have said Sharp will submit an asset appraisal report to its banks next month that will identify businesses it has to sell in return for funding.
The loan amount would also depend on how much investment Sharp secures from Hon Hai, the world's leading contract electronics manufacturer, which previously agreed to buy about a 10 percent stake at 550 yen per share.
As Sharp's condition has weakened -- shares have fallen some 72 percent this year to 186 yen -- Hon Hai has moved to renegotiate the March deal under which it would have invested $844 million.
The Japanese company's revised restructuring plan is not likely to be finalized until September, bankers involved in the process have said. ($1 = 79.2500 Japanese yen)
(Reporting by Chang-Ran Kim and James Topham. Writing by Mari Saito; Editing by Ken Wills)
Notice no mention of the MFP division?
quote:Sources at the company's lenders have saidSharp will submit an asset appraisal report to its banks next month that will identify businesses it has to sell in return for funding.
I was looking for MFP mentioned but this would cover it. Thanks Art!
I hope for the sake of all the Americans employed by Sharp that it doesnt sell the copier division. With redundency comes layoffs and even though they are competitors I dont want to see any more Americans layed off.
With that being said even if they keep copiers. It seems Sharp is critically crippled. Is it just putting off the inevitable?
With that being said even if they keep copiers. It seems Sharp is critically crippled. Is it just putting off the inevitable?
By James Topham and Tim Kelly
TOKYO | Mon Aug 27, 2012 3:14pm IST
TOKYO (Reuters) - Taiwan's Hon Hai Precision Industry (2317.TW) Chairman Terry Gou said an agreement to buy a 9.9 percent stake in Sharp (6753.T) was unchanged "in principle," and that he hoped to conclude the deal with the struggling Japanese TV maker this week.
The two firms reached a deal in March valuing the shares of the cash-starved maker of Aquos TV at 550 yen each, but reopened talks this month after Sharp's stock slumped to around a third of that price as losses mounted.
Without the full 67 billion yen ($852 million) that the Taiwanese firm agreed to pay in March, Sharp would have to rely more on its banks or sell other assets to bolster its finances.
"I can't say anything before we come to a conclusion, (but) in principle, no changes," Gou said at Tokyo's Haneda Airport on Monday, without going into details.
He added, however, that what was more important than the size of the stake or the share price was how to improve Sharp's productivity through "strategic cooperation."
"This is our goal," he said.
The companies would stick to the 9.9 percent plan agreed in March, Japan's Yomiuri newspaper reported on Monday, quoting Sharp President Takashi Okuda as saying in an interview.
A larger stake of 10 percent or more would give Hon Hai the right to ask Japanese courts to break up the century-old company.
Okuda, in the Yomiuri interview, "did mention that our position of having a 9.9 percent investment ratio from Hon Hai still exists," Sharp spokeswoman Miyuki Nakayama said.
"We don't know if it will be agreed this month."
Gou, who was in Japan as part of a Taiwanese delegation of businessmen and politicians, later told reporters at a briefing that he would meet with Sharp executives from Thursday and hoped to conclude the deal this week.
Shares of Sharp jumped as much as 6 percent to 204 yen, the highest since August 13, following the newspaper report, on hopes that the deal remained intact and Sharp would get added financing from its creditors.
MAY SELL TV PLANTS
Like rivals Sony Corp (6758.T) and Panasonic Corp (6752.T), Sharp has been hammered by waning global TV demand and aggressive overseas competitors led by Samsung Electronics (005930.KS) that are grabbing a bigger slice of a shrinking pie.
Sharp may seek to raise extra cash from its Taiwanese partner by selling it two TV assembly plants, one in Mexico and one in China, employing around 3,000 people, Sharp's spokeswoman confirmed.
Gou did not comment on arrival when asked whether Hon Hai would purchase the plants.
The Hon Hai chairman has already purchased a 47 percent stake in Sharp's TV panel plant in Sakai, western Japan, helping the Japanese company lessen its exposure to losses at the facility.
Gou will visit the Sakai factory on Thursday, Taiwan's de facto embassy told Reuters.
Gou, 61, founded Hon Hai in 1974 as a maker of plastic parts for TVs and video game consoles. The business has grown since into one of the world's major builders of TVs, tablets and other consumer devices for other companies, including Apple (AAPL.O).
Forbes magazine in May ranked Gou, who reportedly owns a castle in Europe, as Taiwan's fourth-richest person, worth an estimated worth of $4.8 billion.
SHARP'S CASH NEED
Sharp, with debt of 1.25 trillion yen, holds 360 billion yen of short-term loans and needs to refinance a 200 billion yen convertible bond in September next year.
The company is seeking help from its main banks, Mizuho Financial Group (8411.T) and Mitsubishi UFJ Financial Group (8306.T).
Those lenders will provide 250 billion in loans to Sharp by the end of March, with four insurance companies, including Nippon Life Insurance, providing an additional 100 billion, enough for the TV maker to cover its immediate debt obligations, the Nikkan Kogyo newspaper reported on Monday without citing sources.
Mizuho and Mitsubishi UFJ provided 66 billion yen in unsecured loans to Sharp in July, and this month have made as much as 150 billion yen available to the company, which it must back with collateral, a source at one of the banks told Reuters. The source said he had not heard about any additional amounts from insurers.
Other assets Sharp could sell include an office building in Tokyo that the company vacated this month, which analysts estimate could be worth around $500 million.
The company also holds around 40 billion yen in marketable securities, including stakes in car navigation maker Pioneer (6773.T), Toshiba Corp (6502.T) and medical equipment maker Olympus Corp (7733.T).
Shares in Sharp, which have fallen by more than two-thirds since January, closed up 2.6 percent at 197 yen on Monday, outpacing a 0.2 percent rise in the benchmark Nikkei average .N225. ($1 = 78.6500 Japanese yen)
(Additional reporting by Taiga Uranaka, Chang-Ran Kim and Mari Saito; Additional writing by Linda Sieg; Editing by Chris Gallagher)
TOKYO | Mon Aug 27, 2012 3:14pm IST
TOKYO (Reuters) - Taiwan's Hon Hai Precision Industry (2317.TW) Chairman Terry Gou said an agreement to buy a 9.9 percent stake in Sharp (6753.T) was unchanged "in principle," and that he hoped to conclude the deal with the struggling Japanese TV maker this week.
The two firms reached a deal in March valuing the shares of the cash-starved maker of Aquos TV at 550 yen each, but reopened talks this month after Sharp's stock slumped to around a third of that price as losses mounted.
Without the full 67 billion yen ($852 million) that the Taiwanese firm agreed to pay in March, Sharp would have to rely more on its banks or sell other assets to bolster its finances.
"I can't say anything before we come to a conclusion, (but) in principle, no changes," Gou said at Tokyo's Haneda Airport on Monday, without going into details.
He added, however, that what was more important than the size of the stake or the share price was how to improve Sharp's productivity through "strategic cooperation."
"This is our goal," he said.
The companies would stick to the 9.9 percent plan agreed in March, Japan's Yomiuri newspaper reported on Monday, quoting Sharp President Takashi Okuda as saying in an interview.
A larger stake of 10 percent or more would give Hon Hai the right to ask Japanese courts to break up the century-old company.
Okuda, in the Yomiuri interview, "did mention that our position of having a 9.9 percent investment ratio from Hon Hai still exists," Sharp spokeswoman Miyuki Nakayama said.
"We don't know if it will be agreed this month."
Gou, who was in Japan as part of a Taiwanese delegation of businessmen and politicians, later told reporters at a briefing that he would meet with Sharp executives from Thursday and hoped to conclude the deal this week.
Shares of Sharp jumped as much as 6 percent to 204 yen, the highest since August 13, following the newspaper report, on hopes that the deal remained intact and Sharp would get added financing from its creditors.
MAY SELL TV PLANTS
Like rivals Sony Corp (6758.T) and Panasonic Corp (6752.T), Sharp has been hammered by waning global TV demand and aggressive overseas competitors led by Samsung Electronics (005930.KS) that are grabbing a bigger slice of a shrinking pie.
Sharp may seek to raise extra cash from its Taiwanese partner by selling it two TV assembly plants, one in Mexico and one in China, employing around 3,000 people, Sharp's spokeswoman confirmed.
Gou did not comment on arrival when asked whether Hon Hai would purchase the plants.
The Hon Hai chairman has already purchased a 47 percent stake in Sharp's TV panel plant in Sakai, western Japan, helping the Japanese company lessen its exposure to losses at the facility.
Gou will visit the Sakai factory on Thursday, Taiwan's de facto embassy told Reuters.
Gou, 61, founded Hon Hai in 1974 as a maker of plastic parts for TVs and video game consoles. The business has grown since into one of the world's major builders of TVs, tablets and other consumer devices for other companies, including Apple (AAPL.O).
Forbes magazine in May ranked Gou, who reportedly owns a castle in Europe, as Taiwan's fourth-richest person, worth an estimated worth of $4.8 billion.
SHARP'S CASH NEED
Sharp, with debt of 1.25 trillion yen, holds 360 billion yen of short-term loans and needs to refinance a 200 billion yen convertible bond in September next year.
The company is seeking help from its main banks, Mizuho Financial Group (8411.T) and Mitsubishi UFJ Financial Group (8306.T).
Those lenders will provide 250 billion in loans to Sharp by the end of March, with four insurance companies, including Nippon Life Insurance, providing an additional 100 billion, enough for the TV maker to cover its immediate debt obligations, the Nikkan Kogyo newspaper reported on Monday without citing sources.
Mizuho and Mitsubishi UFJ provided 66 billion yen in unsecured loans to Sharp in July, and this month have made as much as 150 billion yen available to the company, which it must back with collateral, a source at one of the banks told Reuters. The source said he had not heard about any additional amounts from insurers.
Other assets Sharp could sell include an office building in Tokyo that the company vacated this month, which analysts estimate could be worth around $500 million.
The company also holds around 40 billion yen in marketable securities, including stakes in car navigation maker Pioneer (6773.T), Toshiba Corp (6502.T) and medical equipment maker Olympus Corp (7733.T).
Shares in Sharp, which have fallen by more than two-thirds since January, closed up 2.6 percent at 197 yen on Monday, outpacing a 0.2 percent rise in the benchmark Nikkei average .N225. ($1 = 78.6500 Japanese yen)
(Additional reporting by Taiga Uranaka, Chang-Ran Kim and Mari Saito; Additional writing by Linda Sieg; Editing by Chris Gallagher)
The share price of Sharp Corp. rose 9.13 percent to close at the day's high of 215 Japanese yen on the Tokyo Stock Exchange Tuesday.
The rally was seen as a positive response to Taipei-based Hon Hai Group Chairman and founder Terry Gou's announcement in Tokyo a day earlier that he is committed to finalizing an agreement to take a capital stake in the struggling Japanese electronics firm.
Speaking at a news conference for a Taiwanese trade delegation visiting Japan, Gou said the details of the acquisition pact, such as the timing and the amount his group plans to pay per share, have not yet been finalized.
He stressed, however, that both Sharp and Hon Hai will need to work hard to make the deal work.
Local economists and market analysts said the Hon Hai-Sharp partnership could be a historic adventure, given the significant differences between Taiwanese and Japanese business management models and corporate cultures.
According to them, Taiwan-Japan industrial cooperation is basically not easy. But historical momentum is pushing the two sides closer, they said, adding that the Taiwanese government, business community and ordinary people alike should not hesitate to cheer Gou for his adventurous move.
The following are excerpts from the local media coverage of the latest developments in the Hon Hai-Sharp partnership:
United Daily News:
Sharp is one of Japan's leading electronics companies, known for its advanced LCD panels, solar energy technology and environmentally friendly home appliances, but it, like the Japanese economy as a whole, is facing an unprecedented management crisis.
Its share price nosedived from around 900 yen in January 2011 to a 30-year-low of 164 yen Aug. 15 this year.
Chen Yung-feng, a Tunghai University professor and chief executive of the school's Japan research center, said Sharp, like many other famous Japanese companies, has the edge in brand recognition, manufacturing know-how and technological improvement ability.
The company, however, is also plagued by shortcomings common to other Japanese industrial giants -- high production costs, rigidity and closed-mindedness, Chen said.
Moreover, he added, the ownership of large Japanese companies tends to be separate from management, a trend that has made many of them lack decisiveness, acuity and promptness.
In contrast, he said, the founding families of major Taiwanese companies usually still play a critical role in corporate management and tend to be more decisive and responsive during emergencies.
Given these differences in operational styles, it has traditionally been difficult for Taiwanese and Japanese companies to cooperate, Chen went on.
The fact that high-tech companies in both countries face development bottlenecks, however, now offers a historic opportunity for them to forge partnerships, he said.
The Hon Hai-Sharp deal, if successful, will allow the two companies to expand their global market shares, taking advantage of their synergy, such as Sharp's technological strength and Hon Hai's acuity and brand recognition in the Chinese-speaking world, he added. (Aug. 29, 2012).
China Times:
Hon Hai and Sharp originally reached an agreement in March for the Taiwanese conglomerate -- the world's largest contract electronics maker -- to acquire a 9.871 percent stake in Sharp for about US$800 million, or 550 Japanese yen (US$7.01) per share.
When Sharp's share price plunged earlier this month to one-thid of the agreement's price, Hon Hai said in a statement that the price for its acquisition of the Sharp stake will be renegotiated.
Gou's current Japan visit is expected to clarify the situation, with both companies hoping to release a joint statement before the end of August.
Industry sources said the joint statement will not touch on the Hon Hai acquisition price.
The statement will instead focus on the two companies' consensus on expanding their future cooperation, especially in tapping the vast Chinese market where Hon Hai has huge production bases.
Their common goals will include selling 1 million Sharp-brand mobile phones annually in China, consolidating Sharp's share of China's big-screen LCD TV market and tapping into North America's lower-end LCD TV market, the sources said.
Moreover, the sources added, Apple Inc., Hon Hai and Sharp will collaborate to fight against South Korean dominance in the global smartphone and LCD markets. Hon Hai
The rally was seen as a positive response to Taipei-based Hon Hai Group Chairman and founder Terry Gou's announcement in Tokyo a day earlier that he is committed to finalizing an agreement to take a capital stake in the struggling Japanese electronics firm.
Speaking at a news conference for a Taiwanese trade delegation visiting Japan, Gou said the details of the acquisition pact, such as the timing and the amount his group plans to pay per share, have not yet been finalized.
He stressed, however, that both Sharp and Hon Hai will need to work hard to make the deal work.
Local economists and market analysts said the Hon Hai-Sharp partnership could be a historic adventure, given the significant differences between Taiwanese and Japanese business management models and corporate cultures.
According to them, Taiwan-Japan industrial cooperation is basically not easy. But historical momentum is pushing the two sides closer, they said, adding that the Taiwanese government, business community and ordinary people alike should not hesitate to cheer Gou for his adventurous move.
The following are excerpts from the local media coverage of the latest developments in the Hon Hai-Sharp partnership:
United Daily News:
Sharp is one of Japan's leading electronics companies, known for its advanced LCD panels, solar energy technology and environmentally friendly home appliances, but it, like the Japanese economy as a whole, is facing an unprecedented management crisis.
Its share price nosedived from around 900 yen in January 2011 to a 30-year-low of 164 yen Aug. 15 this year.
Chen Yung-feng, a Tunghai University professor and chief executive of the school's Japan research center, said Sharp, like many other famous Japanese companies, has the edge in brand recognition, manufacturing know-how and technological improvement ability.
The company, however, is also plagued by shortcomings common to other Japanese industrial giants -- high production costs, rigidity and closed-mindedness, Chen said.
Moreover, he added, the ownership of large Japanese companies tends to be separate from management, a trend that has made many of them lack decisiveness, acuity and promptness.
In contrast, he said, the founding families of major Taiwanese companies usually still play a critical role in corporate management and tend to be more decisive and responsive during emergencies.
Given these differences in operational styles, it has traditionally been difficult for Taiwanese and Japanese companies to cooperate, Chen went on.
The fact that high-tech companies in both countries face development bottlenecks, however, now offers a historic opportunity for them to forge partnerships, he said.
The Hon Hai-Sharp deal, if successful, will allow the two companies to expand their global market shares, taking advantage of their synergy, such as Sharp's technological strength and Hon Hai's acuity and brand recognition in the Chinese-speaking world, he added. (Aug. 29, 2012).
China Times:
Hon Hai and Sharp originally reached an agreement in March for the Taiwanese conglomerate -- the world's largest contract electronics maker -- to acquire a 9.871 percent stake in Sharp for about US$800 million, or 550 Japanese yen (US$7.01) per share.
When Sharp's share price plunged earlier this month to one-thid of the agreement's price, Hon Hai said in a statement that the price for its acquisition of the Sharp stake will be renegotiated.
Gou's current Japan visit is expected to clarify the situation, with both companies hoping to release a joint statement before the end of August.
Industry sources said the joint statement will not touch on the Hon Hai acquisition price.
The statement will instead focus on the two companies' consensus on expanding their future cooperation, especially in tapping the vast Chinese market where Hon Hai has huge production bases.
Their common goals will include selling 1 million Sharp-brand mobile phones annually in China, consolidating Sharp's share of China's big-screen LCD TV market and tapping into North America's lower-end LCD TV market, the sources said.
Moreover, the sources added, Apple Inc., Hon Hai and Sharp will collaborate to fight against South Korean dominance in the global smartphone and LCD markets. Hon Hai
In this latest go round seems thing are somewhat rosier for Sharp.
"Their common goals will include selling 1 million Sharp-brand mobile phones annually in China, consolidating Sharp's share of China's big-screen LCD TV market and tapping into North America's lower-end LCD TV market, the sources said.
Moreover, the sources added, Apple Inc., Hon Hai and Sharp will collaborate to fight against South Korean dominance in the global smartphone and LCD markets".
No mention of copier in future plans?
"Their common goals will include selling 1 million Sharp-brand mobile phones annually in China, consolidating Sharp's share of China's big-screen LCD TV market and tapping into North America's lower-end LCD TV market, the sources said.
Moreover, the sources added, Apple Inc., Hon Hai and Sharp will collaborate to fight against South Korean dominance in the global smartphone and LCD markets".
No mention of copier in future plans?
Just as things seem to get better! The nightmare continues.
Today
COMMENT-Japanese banks should kill the Sharp zombie
Thu Aug 30, 2012 3:41am EDT
* Japanese banks should let Sharp go bankrupt
* Sharp shows all that is wrong with Japanese business
* Bailing out Sharp may not turn company around
By Nachum Kaplan
Aug 30 (IFR) - The traditional way to kill a zombie is to put salt in its mouth and sew its lips shut. In the case of Japanese zombie companies, a better approach would be for creditor banks to stop bailing them out and let them go bankrupt. Electronics maker Sharp Corp looks just like a zombie in need of such slaying.
..... read rest at Reuters.com
Today
COMMENT-Japanese banks should kill the Sharp zombie
Thu Aug 30, 2012 3:41am EDT
* Japanese banks should let Sharp go bankrupt
* Sharp shows all that is wrong with Japanese business
* Bailing out Sharp may not turn company around
By Nachum Kaplan
Aug 30 (IFR) - The traditional way to kill a zombie is to put salt in its mouth and sew its lips shut. In the case of Japanese zombie companies, a better approach would be for creditor banks to stop bailing them out and let them go bankrupt. Electronics maker Sharp Corp looks just like a zombie in need of such slaying.
..... read rest at Reuters.com
And now for the damage control in the copier division....
Dear SIICA Dealers:
As many of you have recently read, Sharp Corporation is in the process of revitalizing our operations in order to be more competitive. While this process takes time, we are moving aggressively to position ourselves for future growth. However, during this period, there is often speculation about what we are going to do. While much of this has centered on other aspects of Sharp’s portfolio, a recent article appeared claiming Sharp was selling its copier business. I want to end any confusion or concerns you may have.
Let us be very clear:
1.Nikkei has released an article based on their own judgment, and the article is speculation. Sharp Corporation has not released nor acknowledged this article.
2.Sharp Corporation is under the process of revitalizing its business and is exploring all options to improve the financial condition of the company.
3.Sharp is not currently negotiating the sale of the businesses, such as Copier and Air-Conditioner that Nikkei has reported in their article.
It is important for you to know that these are the words of our Executive Management in Japan, not simply the opinion of local management. As you can imagine, a public company such as Sharp must be careful not to mislead any investors so they are cautious with their statements. However, the third point is what is most important for all of us.
As pointed out in numerous articles in the past few weeks, Sharp’s document business is profitable and we are in the process of launching some of our most innovative products and services for our dealer community.
We cannot control the speculation of the press and we cannot control competitors trying to take advantage of the dealer community. However, the SIICA team will continue to provide you with our support and outstanding products.
And that’s where this story and the rumors end.
http://www.theweekinimaging.co...for-sale-sign-rumor/
Dear SIICA Dealers:
As many of you have recently read, Sharp Corporation is in the process of revitalizing our operations in order to be more competitive. While this process takes time, we are moving aggressively to position ourselves for future growth. However, during this period, there is often speculation about what we are going to do. While much of this has centered on other aspects of Sharp’s portfolio, a recent article appeared claiming Sharp was selling its copier business. I want to end any confusion or concerns you may have.
Let us be very clear:
1.Nikkei has released an article based on their own judgment, and the article is speculation. Sharp Corporation has not released nor acknowledged this article.
2.Sharp Corporation is under the process of revitalizing its business and is exploring all options to improve the financial condition of the company.
3.Sharp is not currently negotiating the sale of the businesses, such as Copier and Air-Conditioner that Nikkei has reported in their article.
It is important for you to know that these are the words of our Executive Management in Japan, not simply the opinion of local management. As you can imagine, a public company such as Sharp must be careful not to mislead any investors so they are cautious with their statements. However, the third point is what is most important for all of us.
As pointed out in numerous articles in the past few weeks, Sharp’s document business is profitable and we are in the process of launching some of our most innovative products and services for our dealer community.
We cannot control the speculation of the press and we cannot control competitors trying to take advantage of the dealer community. However, the SIICA team will continue to provide you with our support and outstanding products.
And that’s where this story and the rumors end.
http://www.theweekinimaging.co...for-sale-sign-rumor/