is keen to invest in an interesting venture of $110 million in struggling Sharp which is an agreement to ensure smooth supply of large-sized TV panels to improve the interior workings of the company.
The strong 10 billion yen investment will enable Samsung to acquire a 3% stake in Sharp, according to information from three sources to Reuters.
Tetsuro li, chief executive officer of Commons Am, a Tokyo bases investment fund announced, ‘’Rather than the sum of investment, it is the collaboration with Samsung that Sharp profits that is important. Sharp is vested with an opportunity to use Samsung platform.’’
Sharp is geared to work on a deal at its Kameyama display plant in central Japan. The Japanese firm has to reduced Apple iPad production at the facility since the beginning of the year, the latest trend to cater to consumer demands is to focus on marketing smaller iPad mini, which might not be all that beneficial for Sharp since it is not a supplier.
It is the starting point for a deal between the two arch rival countries, which have competed to the hilt in the consumer electronics segment such as televisions, digital cameras and mobile devices.
A Sharp official in Tokyo did not display or reveal information on the investment plan with Samsung. The spokesperson said, ‘’this is not a piece of information announced by the company.’’ Samsung also remained silent on the topic.
The Japanese media announced that there would be statement on this topic later according to a convenient allotted time.
Sharp was vested with a $4.4 billion bailout from banks in October 2012, but had to mortgage offices and factories in Japan to preserve loans. The firm has to reduce its employee quotient by 10,000 and pledge assets.
The Japanese firm co-ordinated with Hon Hai Precision industry, also known as Foxconn, for an investment, but sources from other outlets have announced that the revival plan is not likely to include capital infusion from Taiwanese giant.