Electronics giant Foxconn have said that they have reached an agreement with Sharp to purchase a stake in the company. They posted a statement on the Taiwan Stock Exchange website on August 6th.
Foxconn said they opened talks with Sharp on August 3rd and an agreement is now in place. Foxconn signed an agreement with Sharp to acquire a 10 percent stake in the vendor. Sharp unfortunately suffered from a share price drop on Friday after the company announced huge losses and a job cut scheme.
Digitimes add “Viewing that Sharp stock price on Friday plunged to a record low of JPY192 per share, which dropped by 65.1% from JPY550 per share for Foxconn to buy, the company proposed that Foxconn does not need to carry out the investment deal, according to Foxconn chairman Terry Guo in a local TV interview on August 5. Therefore, Foxconn will not need to recognize the non-operating loss from investment in Sharp due to drops in Sharp stock price in its second-quarter 2012 financial report, Guo said.
However, Sharp still reserves a stake ratio of 9.98%, the same as planned in the original investment agreement, available for investment by Foxconn, with purchase prices of Sharp shares to be renegotiated, Guo said, adding that Foxconn still wants to invest in Sharp and hopes to finish it by the end of March 31, 2013.”
Kitguru says: Foxconn expanding their business model, yet again.