Sharp offers shares to raise cash

Stefan Mileschin · 13th September 2013, 06:44

Troubled Japanese telly maker Sharp is planning to raise as much as $1.50 billion through a public share offering.

According to Bloomberg, the company, which some expected to be sold off, needs the cash to bolster its finances and could approve the decision as early as next week.

It is also trying to raise approximately $200 million in a third-party share allocation through a financing plan that has been shared with creditors.

The Osaka-based company supplies display panels to Apple but had to be rescued by the banks last year. It has since received investments from Samsung and Qualcomm to stay afloat.

The third-party share placement will be made to companies that have deep business ties to Sharp, including Lixil, Makita and Denso.

The company has been trying to come out with a deal with its main banks over plans to increase its equity capital and reduce its relative level of indebtedness for months.

Sharp suffers from tough price competition in the market for LCD panels and needs to raise funding to address an expected $120 million shortfall in its corporate pension plan it is projected to face by March.

On the plus side, Sharp expects to post an operating profit in the quarter ending in September, which would be its fourth quarterly profit in a row.

It had been in talks with Samsung about an expanded business tie-up but those talks broke down last month.

http://news.techeye.net/business/sha...-to-raise-cash

13th September 2013, 06:44	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 144,259	Sharp offers shares to raise cash Troubled Japanese telly maker Sharp is planning to raise as much as $1.50 billion through a public share offering. According to Bloomberg, the company, which some expected to be sold off, needs the cash to bolster its finances and could approve the decision as early as next week. It is also trying to raise approximately $200 million in a third-party share allocation through a financing plan that has been shared with creditors. The Osaka-based company supplies display panels to Apple but had to be rescued by the banks last year. It has since received investments from Samsung and Qualcomm to stay afloat. The third-party share placement will be made to companies that have deep business ties to Sharp, including Lixil, Makita and Denso. The company has been trying to come out with a deal with its main banks over plans to increase its equity capital and reduce its relative level of indebtedness for months. Sharp suffers from tough price competition in the market for LCD panels and needs to raise funding to address an expected $120 million shortfall in its corporate pension plan it is projected to face by March. On the plus side, Sharp expects to post an operating profit in the quarter ending in September, which would be its fourth quarterly profit in a row. It had been in talks with Samsung about an expanded business tie-up but those talks broke down last month. http://news.techeye.net/business/sha...-to-raise-cash

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Judge says Apple conspired to raise prices on e-books	Stefan Mileschin	WebNews	0	11th July 2013 07:33
Possible new Mac Pro part numbers tip up, WWDC attendees raise eyebrows	Stefan Mileschin	WebNews	0	6th June 2012 08:02
NVIDIA to raise prices on GTX 460 & 470 in November?	jmke	WebNews	0	27th October 2010 10:42
Graphics card vendors may raise prices soon	jmke	WebNews	0	27th February 2010 18:36
XFX Offers Cash Back To GTX 260 & 280 Owners	jmke	WebNews	0	15th July 2008 22:36
AMD to raise $700 million in share sell	jmke	WebNews	3	16th November 2007 19:11
Strapped AMD to raise $1.8 billion	Sidney	WebNews	2	25th April 2007 00:03
Dual-Core Chips May Raise Software Costs	jmke	WebNews	0	14th September 2004 15:11
AMD to raise prices on CPUs	jmke	WebNews	0	13th July 2004 11:12
can't raise the fsb?????	maro	Hardware Overclocking and Case Modding	8	13th July 2004 07:52