Sharp Plan Won't Add Hon Hai Capital Boost
02/21/2013| 08:45pm US/Eastern
TOKYO--Sharp Corp. (>> Sharp Corporation) won't include the so-far unrealized capital injection that it was supposed to get from Hon Hai Precision Industry Co. (>> Hon Hai Precision Industry Co., Ltd.) in its midterm business plan expected to be released at the end of March, the Yomiuri Shimbun reported in its Friday morning edition.
Last year the two companies agreed that Hon Hai would take a 9.9% stake in the Japanese electronics maker at Y550 per share for a total investment of Y66.9 billion, but the deal fell into disarray after Sharp's share price tumbled on the back of poor earnings projections. Sharp's shares were off 2.5% at Y313 in early trading in Tokyo Friday.
The Yomiuri report also said that Sharp is considering receiving a capital injection from creditor banks that does not include Hon Hai.
Sharp later said in a statement that nothing has been decided on the matter and the report is not based on something that the company has released.
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