Sharp Cancels Share Sale
As we noted previously Sharp (6753.JP) had indicated that the board had authorized the sale of its 1.03m shares (24.55% voting rights) in Sakai Display Products, to an undisclosed by ‘unaffiliated’ buyer. Sakai Display Products is the holding entity for Sharp’s Gen 10 LCD fab in Osaka, Japan. As of Last Friday the board decided to cancel the sale as the company ‘received a proposal from the assignee to cancel the purchase of SDP shares’. The company indicated that it is continuing discussions as to the sale of shares but gave no indication as to with whom or whether it was the same party previously noted (they have never disclosed same). We note that Sakai Display products is owned by Terry Gou, the founder and chairman of Foxconn (2354.TT), the company that owns a controlling stake in Sharp. At the same time Sharp also noted that it will take a ~$145m loss associated with Sakai Display Products primarily due to Sakai’s impairment, which pushed the equity affiliate into a loss for the 3rd quarter (12/31/20), and was likely ‘clearing the decks’ for the share sale.
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