LISTING REQUIREMENTS:The Japanese company wants to return to the first section of the Tokyo Stock Exchange, but cannot as long as the Taiwanese firm holds a 66% stake
Date: Mar 04, 2017
By: Staff writer, with CNA
Hon Hai Precision Industry Co (鴻海精密) is planning to sell a 1 percent stake in Japan-based Sharp Corp to meet Japanese securities listing rules and help Sharp’s equity listing return to the first section of the Tokyo Stock Exchange (TSE), the Nihon Keizai Shimbun reported yesterday.
Sharp shares were downgraded to from the first to the second section of the TSE in August last year after it reported that its debts had surpassed its assets as of the end of the preceeding March.
TSE regulations state that a company that wants to list its shares on the first section, where major large firms are traded, should have no less than 35 percent of its shares on the market.
Hon Hai, the world’s largest contract electronics maker, now holds a 66 percent stake in Sharp.