TOKYO, Sept 12 Japan's Sharp Corp is
planning to raise as much as 15 billion yen ($150 million)
through a public share offering as the TV maker and display
maker aims to bolster its finances, and could approve the
decision as early as next week, sources with knowledge of the
decision told Reuters.
At the same time, the company could raise approximately 20
billion yen ($200 million) in a third-party share allocation,
according to a financing plan that has been shared with
Sharp is expected to decide on the steps at a board meeting
scheduled as early as next week, according to the sources who
asked not to be identified.
Sharp had no immediate comment.
The Osaka-based company, which supplies display panels to
Apple Inc, received a $4.6 billion rescue from banks
last year and has since received investments from Samsung
Electronics Co Ltd and Qualcomm Inc.
The third-party share placement will be made to companies
that have deep business ties to Sharp, including Lixil Group
, Makita Corp and Denso Corp,
according to the sources.
Sharp has been working with its main banks over plans to
increase its equity capital and reduce its relative level of
indebtedness for months. Sharp has said it was considering a
wide range of options.
The company faces tough price competition in the market for
LCD panels. In addition, Sharp needs to raise funding to address
an expected 120 billion shortfall in its corporate pension plan
it is projected to face by March.
Sharp expects to post an operating profit in the quarter
ending in September, which would be its fourth quarterly profit
on that basis.
Sharp had been in talks with Samsung about an expanded
business tie-up and additional investment but those talks broke
down last month, people with knowledge of the discussions have