The Taipei Times says that Foxconn and Sharp are (again) delaying finalisation of the takeover (Sharp Accepts Foxconn Bid), as Foxconn looks into Sharp’s financial performance in the current quarter.
Sources say that Foxconn has requested Sharp’s latest financial results. Meanwhile, Sharp claims that it expects an operating profit of ¥10 billion ($87.8 million), compared to analyst estimates of a ¥24 billion ($211.1 million) operating loss.
Foxconn delayed its accepted acquisition to look into Sharp’s potential liabilities – valued at around ¥300 billion ($2.6 billion) (Foxconn Delays Sharp Acquisition) – last month. The firm is now said to be talking to Sharp’s banks to mitigate the cost of these liabilities. According to the Taipei Times, Foxconn may – under certain circumstances – seek to reduce the ¥100 billion ($879.7 million) it had planned to pay to Mizuho Financial Group and Mistubishi UFJ Financial Group, for the preferred stock that they hold in Sharp.
Toyodo Uemura, a spokesperson for Sharp, said, “Sharp and Foxconn have not set a signing date. Both companies are working hard to reach a satisfactory agreement as soon as practically possible”.
