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Taiwanese government says Hon Hai should buy Sharp

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Staff writer ▼ | February 27, 2016
Taiwan Sharp
Technology   Advantages of Sharp acquisition

The Taiwanese government highlighted the advantages of the acquisition of Japanese company Sharp by Hon Hai, even as the signing of the deal was pushed back.

Taiwan's minister of economic affairs John Deng said the agreement will strengthen Foxconn's production, brand, markets and technology.

Sharp's high level of technological advancement will also help boost Foxconn's global visibility and Taiwanese manufacturing, Deng added.

Sharp said Thursday it was accepting Foxconn's bailout offer estimated at $6.25 billion, including the purchase of preferred Sharp shares held by Japanese banks worth $888 million.

Following the acquisition, Foxconn will hold 65.9 percent of the shares of the Japanese company, which will remain independent and continue to use the Sharp brand.

On Wednesday, Sharp sent a document to Foxconn, which, according to Taiwanese industry sources, included information about debts and losses amounting to $3.125 billion.

Following this, Foxconn has now delayed concluding the deal, which was expected to be signed end February, and issued a statement saying it needed to scrutinize the document before finalizing the takeover.

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