Agreement reached with JDI Asset Management Company on financing of up to 100 billion yen or more January 31, 22:21
Japan Display, a liquid crystal panel maker that is undergoing business restructuring, has revealed that it has finally reached an agreement to raise up to 100 billion yen or more from a Singapore-based asset management company. Leveraging this support will require a fundamental rebuilding.
According to the announcement, Japan Display has finally reached an agreement on November 31 to raise up to ¥ 100.8 billion from Ichigo Trust, an independent asset management company based in Singapore.
Ichigo Trust has invested ¥ 50.4 billion in late March to become Japan Display's largest shareholder, and plans to support the remaining ¥ 50.4 billion from April onwards while monitoring the business situation.
Japan Display will hold an extraordinary general meeting of shareholders in March to obtain approval from shareholders, and will use the received funds to repay debt and invest in businesses that are expected to grow, such as for automobiles.
Japan Display, which was launched by integrating the three panel businesses of Hitachi, Toshiba and Sony, has suffered from a slump in the LCD business for smartphones and has been in excess of debt of over 100 billion yen. According to the report, the debt overrun is expected to be eliminated.
On the other hand, the panel business is fiercely competitive with overseas manufacturers, and it is important to leverage support to make a fundamental reconstruction.
JDI President "Business Revival"
Minoru Kikuoka, President of Japan Display, held a press conference in Tokyo, saying, "We have no more chances to get out of debt excess. Until now, we had very high technical capabilities, but we couldn't make a profit. I want to rebuild the business with the help of a new partner. "
`` Japan Display has the world's most advanced development capabilities and is capable of mass-producing high-quality products, '' said Scott Caron, president of Ichigo Asset Management, Ichigo Trust's group company and will be chairman of Japan Display. Despite having the know-how, the funding system that supported it had collapsed, and I believe that the power of technology and human resources has not fallen, so I believe that the company can rebuild itself. "
Postponed JDI earnings announcement
On the other hand, Japan Display is conducting an investigation by a third-party committee on the alleged suspicion that inappropriate accounting was performed in the past financial results, such as recording more assets than actual inventory. As it has been prolonged, we have decided to postpone our announcement of our earnings results on February 13.