Hon Hai Technology Group, the world's largest contract electronics maker, said Wednesday that it will spend 388.8 billion Japanese yen (US$3.47 billion) to acquire a 66 percent stake in Sharp. The acquisition price was about 100 billion yen lower than the figure the group had previously planned to spend.

The group, known as Foxconn Technology Group outside Taiwan, said that it will spend 288.8 billion yen to acquire new shares issued by Sharp at 88 yen each, giving it a 66 percent stake in the Japanese firm.

Hon Hai Precision Industry Co., the bigger company under Hon Hai Group, will acquire a 26.14 percent stake in Sharp, and other subsidiaries of the group will buy into the rest to boost the total stake to 66 percent.

In addition, Hon Hai Group will spend 100 billion yen to acquire new preferred shares issued by Sharp as part of the bailout plan.

Foxconn has also the option of increasing its stake in Sharp next year.

The deal was delayed following concerns related to Sharp's contingency liabilities amounting to 350 billion yen.

The deal gives the world's top electronics contract manufacturer control of Sharp's advanced screen technology which it does not have, and helps strengthen its pricing power with major client Apple.

Sharp plans to invest in mass production of OLEDs (including flexible OLEDs) and LCDs, although it could take 2-3 years until the company could effectively compete with market leaders, LG Display and Samsung Display.

In the small-sized display market for mobile phones, Sharp/Foxconn plan to utilize both IGZO technology and LTPS technology to overcome difficulties that existing OLED display products are facing, which are to produce products with low power consumption with low cost.

In the medium/large-sized display market, the companies expect that the OLED display market will expand further, because OLED displays with IGZO technology consume less power and perform better compared with LCDs with amorphous silicon.

Sharp can also help Foxconn develop its own vertical integration strategy, aiding in its competition with other electronics manufacturing service companies such as Pegatron, TPV and Qisda.