TOKYO Dec 1 Sharp Corp has agreed to
sell three of its television assembly factories outside Japan to
Hon Hai Precision Industry, a deal which would total
about 55 billion yen ($666.91 million), the Sankei newspaper
reported on Saturday.
The daily, citing sources it did not identify, said both
companies have reached an agreement for debt-laden Japanese
consumer electronics firm Sharp to sell its television factories
in Mexico, China and Malaysia to Hon Hai.
The sale of Sharp's Mexican plant could go ahead as soon as
in December, the paper said.
"Hon Hai is mostly enthusiastic about buying the Mexican
plant," the paper quoted a Sharp source as saying.
An official at Sharp was not immediately available for
Sharp has four television plants away from Japan, but the
sales would not include its facility in Poland, the paper said.
Taiwan's Hon Hai is considering becoming the biggest
stakeholder in the century-old Japanese firm, which has lost
three-quarters of its value so far this year.
Last month, Sharp nearly doubled its forecast full-year net
loss to 450 billion yen after booking a $1.1 billion
restructuring charge in July-September.
Locked out of the debt capital markets as a result of its
massive losses and falling market share, Sharp received a
guarantee for 360 billion yen in loans from its two main
lenders, Bank of Tokyo-Mitsubishi UFJ and Mizuho
Corporate Bank, in September.
($1 = 82.4700 Japanese yen)
(Reporting by Chikafumi Hodo and Tim Kelly; Editing by Daniel