Sources in Japan, including the Nikkei newspaper, claim that Hon Hai has proposed a purchase of the entirety of Sharp for ¥300 billion ($2.5 billion). The figure represents a 50% – 60% premium on Sharp’s current market value.
It is rumoured that Hon Hai would require Kozo Takahashi, Sharp’s president, to step down as part of a complete management reshuffle, if the deal went ahead.
Hon Hai could also take on Sharp’s debt if it were to buy the company. The debt stood at ¥760 billion ($6.3 billion) in September.
Analyst Comment
Foxconn has been linked to an investment in Sharp’s display business before, but the deal fell through earlier this year (Foxconn Shelves Sharp Investment Plan). This is the first time that we have heard rumours of a full purchase of Sharp. (TA)
