Sharp Corporation (PINK:SHCAY), the struggling Japanese electronics manufacturer is planning to sell its 30 million shares or 9.2 percent stake in Pioneer Corp (TYO:6773), according to a report from Japan Times.
According to the report, Sharp Corporation (PINK:SHCAY) is looking for buyers for its shares in Pioneer Corp (TYO:6773) since last year, as the company aims to raise funds to finance its restructuring initiatives. The beleaguered electronics manufacturer also aims to meet the redemption of its convertible bonds worth approximately 200 billion yen or $2.14 billion.
Japan Times cited information from unnamed sources that Sharp Corporation (PINK:SHCAY) intends to continue its partnership with Pioneer Corp (TYO:6773). The two companies established a business and capital partnership in 2007 to develop various products such as optical discs and automotive equipments. According to sources, the home electronics and car navigation systems maker will keep its 10 million shares or 0.8 percent stake in Sharp.
Sharp Corporation plans to complete the sale of its shares in Pioneer this month. The company aims to sell its stock holdings to car and medical device manufacturers.
Last month, Sharp Corporation missed the deadline to receive the second half of the $120 million investment from QUALCOMM, Inc. (NASDAQ:QCOM) after the company failed to complete the plan to start fabricating power-saving screens. The company received Qualcomm’s $60 million initial investment in December, last year.
The chipmaker set conditions such as the completion of the specifications for smartphone & tablet screens before releasing the remainder of its investment. Sharp has until June 30 to complete the conditions to receive the second half of the investment.
Foxconn Technology Co., Ltd. (TPE:2354) also decided to delay its investment to Sharp Corporation (PINK:SHCAY) after the two companies failed to amend an earlier agreement. However, Foxconn chairman, Terry Gou indicated that his company is still open to invest in the future if the management of the Japanese electronics manufacturer will be able to develop a new business plan.
Meanwhile, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) invested approximately $112 million in Sharp Corporation last March. Under its agreement, the South Korean electronics maker acquired 3 percent stake in Sharp as well as the supply of large LCD panels for televisions. Samsung became the fifth largest shareholder of the Japanese electronics company.
