Foxconn lowering offer for Japan's Sharp: Yomiuri

Sat Mar 19, 2016 11:27pm EDT
 
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TOKYO (Reuters) - Taiwan's Foxconn is lowering an offer for loss-making Japanese electronics maker Sharp Corp (6753.T: Quote) from an initial plan of 489 billion yen ($4.4 billion), the Yomiuri newspaper reported on Sunday.

The reason behind the move is that Foxconn appears to be concerned about financial risks of potential liabilities at Sharp and its business outlook, according to Yomiuri. The newspaper did not say how much Foxconn, formally known as Hon Hai Precision Industry Co (2317.TW: Quote), will lower the offer to.

A Sharp spokesman declined to comment on the report.

Sharp late last month said it would issue around $4.4 billion worth of new shares to give Foxconn a two-thirds stake in a deal the Taiwanese company backed out of at the last minute. Foxconn's total investment was set to total nearly $6 billion, according to a source.

Foxconn is seeking guidance from Sharp on its latest quarterly performance as part of its efforts to finalize the planned acquisition, a person familiar with the matter said.

($1 = 111.5500 yen)

(Reporting by Kaori Kaneko and Ritsuko Ando; Editing by Muralikumar Anantharaman)

 
The logo of  Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in Tucheng, New Taipei city, December 24, 2013. REUTERS/Pichi Chuang