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Technology

Roller-coaster ride for Sharp as it unveils new share issue, Toshiba PC buy

Japanese electronics maker to use funds to buy back preferred shares

PUBLISHED : Tuesday, 05 June, 2018, 4:00pm
UPDATED : Tuesday, 05 June, 2018, 4:00pm

Japan’s Sharp Corp said on Tuesday it will issue new shares worth about 200 billion yen (US$1.8 billion), sending shares of the company tumbling.

The Japanese electronics unit of Taiwan’s Foxconn plans to use most of the funds to buy back preferred shares from its main lenders Mizuho Financial Group and Mitsubishi UFJ Financial Group.

Earlier in the day, Sharp said it will buy Toshiba Corp’s personal computer business for 4 billion yen ($36 million), highlighting its recovery under the control of Foxconn and marking a return to a business it quit eight years ago.

Its shares fell as much as 10 per cent at one stage.