Sharp Corp’s share is down 11% at today’s meeting in Tokyo following the announcement of a plan to fully acquire a loss-making subsidiary.
The Japanese subsidiary of Foxconn Technology Group said after the market closed on Friday that it plans to negotiate with the current owner of Sakai Products Corp, the acquisition of all the shares it does not already own.
Sharp said the results of Sakai Display for 2021 are not yet available, but the subsidiary reported losses in the previous three years.
Mitsushige Akino, managing director of investment management at Ichiyoshi Asset Management, said there was uncertainty about the terms of a possible deal and investors were not convinced of the value of the acquisition.
Sharp stressed that Sakai Display products are likely to be competitive in the US due to US-China trade tensions.
Sharp stressed that World Praise owned 80% of Sakai Display shares and Sharp the remaining 20%.
Sharp founded Sakai Display in 2009, but later sold its stake.
The Spanish company also announced that the executive director Po-Hsuan Wu, will become CEO from April 1.
Source: Capital
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