Electronics manufacturer Sharp Corporation is aiming to raise $1 billion (100 billion yen) by the end of September by offering shares to the public besides partnerships with other companies. Sharp has been reported to make 90 billion yen from public shares, while the remaining 10 billion would come from partnership deals. The local media had already expected the possibility of a public offering from Sharp, but no specific time frame had been considered.
Sharp is known for supplying Apple Inc. with display panels or screens for its iPad and iPhone, but overall profits have not been favourable to the centennial-old company. Sharp is believed to eye some companies like Lixil Group Corp., known for being a building material and housing equipment manufacturer, for partnerships. Makita Corporation, a power tools manufacturer based in Anjo, Aichi Prefecture, has also been considered for a possible joint venture. The rest of the hoped profits would come from shares sold to the public.
The decline of business has gotten worse, but Sharp was lucky enough when Mizuho Financial Group and Mitsubishi Financial Group provided a $4 billion bailout the previous year. Investments from Samsung Electronics have also helped keep the Japanese electronics company moving. Both companies penned a deal allowing Samsung 3% of shares. Qualcomm Inc., an American semiconductor company, has also taken part in making investments in Sharp Corporation. Despite the 146 billion yen lost in 2012, Sharp believes it will be able to make profits of 80 billion yen by the end of March in 2014.
[via Reuters]
