Samsung set to buy 3% stake in Sharp: report

Mar 05, 2013
Models display Sharp's line of Galapagos tablet comptuers in Tokyo on November 29, 2010. South Korean electronics giant Samsung is set to buy a three-percent stake in struggling Japanese rival Sharp via a capital increase, a press report said Tuesday, a deal that would give Samsung greater access to smartphone and tablet computer screens.

South Korean electronics giant Samsung is set to buy a three-percent stake in struggling Japanese rival Sharp via a capital increase, a press report said Tuesday, a deal that would give Samsung greater access to smartphone and tablet computer screens.

The Japanese economic newspaper said in its online edition that Sharp would sell Samsung new shares worth around 10 billion yen (83 million euros, $108 million), and use the funds it earned to bolster its bottom line.

An official announcement was expected on Wednesday, Nikkei said.

Sharp has suffered from stiff competition in the market for screens that has pushed prices lower, and would now provide such products made at its plant in Kameyama, central Japan, to Samsung on priority.

The plant currently ships many of its screens to Samsung's arch rival Apple, and the agreement should allow Samsung to avoid having to invest massively in new production capacity.

According to Nikkei, the two companies could explore cooperation in other areas as well.

Sharp expects to close its fiscal year with a net loss of 450 billion yen, and has been searching for industrial and financial partners.

In March 2012, Sharp signed an accord with the Taiwanese group Hon Hai, also known by its commercial name of , that would see the latter acquire a 9.9 percent stake in Sharp for 550 yen per share.

Explore further: BofA to refund Apple Pay customers charged twice

add to favorites email to friend print save as pdf

Related Stories

Japan's Sharp in TV tie-up talks with Lenovo

Jan 17, 2013

Shares in struggling Japanese electronics maker Sharp shot up 7.30 percent on Thursday on reports it is in talks with Chinese computer giant Lenovo Group to work together on the production of televisions.

Sharp annual profit more than quadruples

Apr 27, 2011

(AP) -- Sharp said its annual profit more than quadrupled due to brisk demand for liquid crystal display screens but warned the earthquake and tsunami that hit Japan last month will have a "broad" impact on its business.

Recommended for you

Nokia turnaround since handset unit sale continues

7 hours ago

Nokia appears to have turned around its fortunes after the sale of its ailing cellphone unit to Microsoft, reporting a third-quarter net profit of 747 million euros ($950 million), from a loss of 91 million euros a year earlier. ...

Yahoo CEO defends strategy in face of criticism

7 hours ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

7 hours ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0