Sharp, a major electronics manufacturer, has announced that it has agreed to acquire 80% of the shares of "Sakai Display Products", which produces large LCD panels for TVs, from overseas funds.
The aim is to regain the shares that were released due to the company's poor management and make it a subsidiary to strengthen the supply of panels to the United States.
According to the announcement, Sharp currently holds a 20% stake in "Sakai Display Products," which produces large LCD panels for TVs, but has agreed to acquire the remaining 80% from an overseas fund. about it.
This company was established by Sharp in 2009 with an investment of 430 billion yen as the world's largest LCD panel factory, but after that, due to intensifying competition with Korean and Chinese manufacturers, it contributed to the poor management of the company. I also gave up the majority of the shares.
Under this agreement, Sharp will issue new shares and exchange them for shares of "Sakai Display Products" to make it a wholly owned subsidiary again.
The reason for this is that the company has a production base other than China, as demand for LCD panels continues to rise due to the establishment of a new lifestyle accompanying the spread of the new corona infection, and trade friction between the United States and China continues. It is noted that supplying LCD panels for the United States can be expected to have an advantage, and it will be interesting to see if it can lead to strengthening of competitiveness in this field.