Banks Craft Sharp Refinancing Without Hon Hai Deal
09/07/2012| 02:46am US/Eastern
Banks are working on a refinancing plan for Sharp Corp. (>> Sharp Corporation (ADR)) but aren't waiting for Hon Hai Precision Industry Co. (>> Hon Hai Precision Industry Co., Ltd.) to agree to buy a stake in its Japanese partner before going ahead, the Reuters news agency said Friday, citing unnamed people at the lenders.
Mizuho Financial Group Inc. (>> Mizuho Financial Group, Inc.) and Mitsubishi UFJ Financial Group Inc. (>> Mitsubishi UFJ Financial Group Inc.) are aiming to arrange financing of as much as Y300 billion ($3.8 billion) for Sharp by as early as Sept. 20 in exchange for cost-cutting pledges and asset sales, two people were quoted in the report as saying.
The plan, which won't cover a Y200 billion convertible bond that matures in September next year, will go ahead with or without Hon Hai's capital injection, the people added, the report said.
When asked when the company was aiming to strike a deal with Sharp, a spokesman for Hon Hai said "I don't think we have a deadline," the report said.
Full Story: http://www.reuters.com/article/2012/09/07/sharp-honhai-banks-idUSL4E8K71JE2012090
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