Sharp's newly appointed President Takashi Okuda speaks at a press conference in Tokyo on Tuesday, March 27. [File photo]
Sharp Corp. agreed with Taiwan's Hon Hai Precision Industry Co. on Tuesday to form a strategic cooperative relationship with projects including the sale of part of Sharp's major factory in western Japan, according to Sharp's incoming President Takashi Okuda.
Under the new pact in LCD production, Taiwan's Hon Hai will take about 9.9 percent shares in Japan's Sharp Corp, after Sharp issued about 67 billion yen (about 809.6 million U.S.dollars worth of its shares to four Hon Hai group companies, Takashi said at a press briefing Tuesday.
Hon Hai also became the biggest share holder of Japan's Sharp after the deal was made.
Sharp will sell about a 46.5 percent stake in its LCD panel- manufacturing factory in Sakai, Osaka Prefecture, to Hon Hai, and Hon Hai will eventually accept up to 50 percent of the LCD panels manufactured by the factory, according to the new pact.
The company, which is projecting its largest net loss of 290 billion yen for the business year ending this March, aims to enhance its cost competitiveness through cooperation.
Guo Taiming, president of Taiwan Hon Hai said via a video clip at the press conference, that Sharp will enhance its global competitiveness by cooperating with Hon Hai in manufacturing and allocating the funds to invest in new technology.
Okuda, currently the executive managing officer, will replace Mikio Katayama as the new president of Sharp on April 1.