Foxconn Completes Sharp Acquisition
Sharp officially announced on Friday that Taiwan's Hon Hai Precision Industry provided capital as part of a deal to bail out the Japanese electronics company. Sharp President Kozo Takahashi stepped down the same day to make way for Hon Hai Vice Chairman Tai Jeng-wu, who is to fill the post soon.
Hon Hai, also known as Foxconn, reached an agreement with Sharp in April to spend 388.8 billion yen ($3.8 billion) to acquire 66% of Sharp's voting stock. Once the deal was agreed upon, Sharp then secured a 300 billion yen credit line from major Japanese banks.
Sharp had initially hoped to receive Foxconn's cash by the end of June. But Chinese authorities' approval process took longer than expected.
On Thursday, Foxconn said its bailout plan for Sharp had been greenlighted by Chinese authorities.
Sharp plans to use Hon Hai's capital to increase investment, such as in the development of organic light-emitting diode display panels.