Japan Display Inc said on Thursday a Chinese-Taiwanese consortium will formalize its decision to invest in it by June 14, after client Apple agreed to wait for money owed and a government-backed fund offered to waive debt.
The deal will unlock up to 80 billion yen ($729 million) for the smartphone screen maker, hit by slowing sales of Apple’s iPhones and a late shift to organic light-emitting diode (OLED) screens.
The consortium, which includes Taiwanese flat screen maker TPK Holding Co Ltd and Chinese investment firm Harvest Group, will replace Japanese government-backed fund INCJ as Japan Display’s biggest shareholder with a 49.8% stake.
INCJ’s stake will fall to 12.7% from 25.3%.
The consortium reached a basic agreement on the deal in mid-April but delayed formalizing it to reassess Japan Display’s prospects. Later INCJ offered to forgive 44.7 billion yen in debt in return for Japan Display’s 27.2% stake in OLED panel maker JOLED, Japan Display said on Thursday.
Japan Display also on Thursday said “a client” to which it owed money had agreed to halving the pace of repayment for two years.