Foxconn to add Sharp to portfolio, deal worth 388.8b yen

A logo of Sharp Corp is seen above a Chinese tourist standing outside an electronics retail store in Tokyo, Japan, March 30, 2016. [Photo/Agencies]

TAIPEI - Taiwan's Foxconn Technology Group said Wednesday that it would acquire about 66 percent of Japanese electronics company Sharp's common shares for about 288.81 billion Japanese yen ($25.7 billion) and another 100 billion yen on special shares.

The price for common shares was set at 88 yen per share, 25.4 percent lower than the previously announced price, according to a press conference held by Foxconn, which added that the two sides will sign the contract on Thursday and hold a signing ceremony and a press conference in Osaka, Japan, on Friday.

On Feb 25, 2016, Sharp said in a circular that the company would issue 3.28 billion new common stocks for Foxconn at a price of 118 yen per share, with a total value of more than 387 billion yen. Meanwhile Foxconn would spend 101.73 billion yen on special shares of Sharp.

However, Foxconn said on Feb 26 that it had received a key document and needed to evaluate the content before making any final decisions. Media reports said the new document listed Sharp's contingent liabilities of about 350 billion yen, posing future financial risks.

In March 2012, Foxconn signed an agreement with Sharp to acquire 9.9 percent of Sharp for about 70 billion yen. The deal did not come to fruition, as Sharp's performance deteriorated and its stock price plunged.