Sat, Jun 29, 2019 - Page 12 News List

Apple gives ailing Japan Display a US$100m lifeline

Bloomberg

Apple Inc is providing a US$100 million lifeline to Japan Display Inc, a person familiar with the matter said, shoring up a key smartphone display supplier that is trying to salvage a bailout package after multiple investor departures.

The US company is stepping in after Taiwan’s TPK Holding Co (宸鴻) withdrew from a US$1.1 billion rescue plan for the Japanese firm, the person said, asking not to be identified discussing a private deal.

Cosgrove Global Ltd and Topnotch Corporate Ltd pulled out shortly afterwards, leaving the bailout in limbo.

Harvest Tech Investment Management Co (嘉實科技) and Oasis Management Co remain in discussions, the Japanese company said in a statement on Thursday.

It has received commitment letters from Harvest for investments of US$300 million — including Apple’s outlay — and a conditional agreement from Oasis to stump up as much as US$180 million. Japan Display said it is continuing talks and seeks to close a bailout deal by Dec. 30.

ROLLER-COASTER RIDE

It has been a roller-coaster month for Japan Display’s shareholders. The stock fell to near a record low on June 17 after TPK’s withdrawal, then soared 18 percent on Thursday after a report emerged that Apple was considering financial support. It ended unchanged yesterday.

Japan Display has struggled with faltering demand and a shift in technology, losing money for five straight fiscal years.

The smartphone market has been shrinking and Apple, its biggest customer, is moving to next-generation organic light-emitting diode displays, which the Japanese company does not produce in mass quantities.

This story has been viewed 1579 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top