Foxconn to Get Stake in Sharp at Lower Price
Hon Hai, also known as Foxconn, may obtain a 9.9% stake in Sharp at a lower price than previously agreed upon, reports the WSJ.
Hon Hai, the world's largest contract electronics manufacturer, also known as Foxconn, agreed in March to take a 9.9% stake in Sharp at ¥550 a share, or about US$7 a share, for a total of roughly $800 million. However, the price of Sharp's shares has since fallen to about one-third of that level; on Monday, the stock ended down 6.1% at ¥186, extending its decline in the prior two trading days.
"We have proposed to revise the [stake-sale] price," confirmed Sharp spokesman Heihachiro Ochiai.
The companies are still in negotiation for what that per-share sale price will be. Many believe that Foxconn is investing in Sharp ahead of a push by Apple into the television business.
Recently, it was reported that Foxconn may even want to double its stake in Sharp from 9.9% to 20%.