Sharp aims to raise US$1b from share sales
Japan’s Sharp Corp is aiming to raise 100 billion yen (HK$7.75 billion) from share sales by the end of September as the struggling display maker looks to partnerships and a public offering to bolster its finances, media reports and sources familiar with the situation said on Friday.
The company plans a public offering of 90 billion yen by end-September, Kyodo news agency reported, while two sources familiar with the matter said it plans to raise 10 billion yen through a share sale to housing appliance maker Lixil Group Corp.
Sharp is also sounding out other companies including power tools maker Makita to buy shares, the sources told Reuters.
The Osaka-based company, which supplies display panels for Apple Inc’s smartphones, received a US$4.6 billion rescue from banks last year and has since received investments from Samsung Electronics and Qualcomm.
Japanese media have flagged the possibility of a public offering this year although the specific timing had remained unclear before Friday’s mention of an end-Friday target.
Shares in Sharp rose more than 5 per cent in morning trade on Friday to 490, their highest in seven weeks. They have gained nearly 15 per cent over three days.
The company said in a statement nothing had been decided regarding a public share offer or a share sale to companies.
Sharp has forecast an 80 billion yen operating profit for the year to next March 31, after logging a 146.27 billion yen operating loss last year.