x

Abu Dhabi, UAEWednesday 17 October 2018

Japan's Sharp to raise 216 billion Yen in share sale

Proceeds to be used to buy preferred stock and on research and development 

Japan's Sharp will raise as much as $2 billion in a public share sale. Kazuhiro nogi / AFP Photo
Japan's Sharp will raise as much as $2 billion in a public share sale. Kazuhiro nogi / AFP Photo

Sharp, the Japanese electronics maker controlled by Foxconn Technology Group, is raising as much as 216.2 billion yen ($2bn) in a public share sale.

The proceeds will be used to purchase preferred stock and on research and development, the Osaka-based company said in a statement Friday. Sharp’s stock has declined 7.3 per cent since it registered to sell the shares on June 5.

Sharp is well into a turnaround since Foxconn bought the company in 2016 and injected money for capital investments.

The stock rose to a peak of about 5,000 yen last year before sliding on concerns over softening demand for smartphones and the liquid-crystal displays that it makes for companies including Apple.

Sharp is using the bulk of the proceeds to buy back 200,000 preferred shares and retire the stock. The remainder will be used on capital expenditure and research.

Earlier this month, Sharp announced plans to buy Toshiba's personal-computer business as its Taiwanese parent seeks to expand beyond contract manufacturing and build a brand of its own.