Thu, Sep 27, 2012 - Page 14 News List

Hon Hai mum on reports of Sharp TV factory sale plan

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics maker, declined to comment yesterday on Japanese media reports that Sharp Corp is planning to sell its overseas TV assembly plants to the Taiwanese firm.

According to the Nihon Keizai Shimbun, the plan to sell the TV plants to Hon Hai is part of the loss-incurring Japanese firm’s restructuring plan in a bid to secure an agreement from creditor banks to refinance other debts that could reach about ¥360 billion (US$4.63 billion).

SALES AND CUTS

The report said Sharp is planning to sell TV plants in China, Mexico and Malaysia to Hon Hai, while the Japanese firm is also likely to sell its solar energy business — Recurrent Energy — in the US.

In addition, the Japanese company will cut its workforce by more than 10,000 employees as part of its restructuring, the report said.

Jiji Press, a Japanese wire news service, reported that if Sharp fails to boost its profitability as much as it expects, the company might facilitate a merger of its cellphone business with Fujitsu.

WILL TO SURVIVE

The Japanese reports said Sharp wants to use the restructuring plan to persuade creditor banks that the company will be able to become profitable even if it fails to secure a fund injection from Hon Hai.

Hon Hai and Sharp are in talks to renegotiate the terms of a proposed acquisition deal in which the Taiwanese firm and three of its affiliates are planning to buy a nearly 10 percent stake in Sharp.

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