UNSETTLED:Hon Hai is waiting for the latest results from Sharp, which says it expects a profit of ￥10 billion for this fiscal year, while analysts estimate a loss of ￥24 billion
Date: Mar 16, 2016
Hon Hai Precision Industry Co (鴻海精密) is delaying finalization of its deal for Sharp Corp to get a clear understanding of the Japanese company’s performance in the current quarter, increasing the chances an agreement would not be reached this month, according to people familiar with the matter.
Hon Hai, which agreed to pay more than ￥600 billion (US$5.3 billion) for control of Sharp, has asked the Osaka-based company and its auditor for the latest financial results, said the people, who asked not to be identified because the matter is private.
Sharp has said it expects an operating profit of ￥10 billion for the fiscal year that ends this month, while analysts estimate the company would have an operating loss of about ￥24 billion.
Sharp’s board last month voted to accept the offer of Hon Hai — known as Foxconn Technology Group (富士康科技集團) outside Taiwan — over a competing bid from Innovation Network Corp of Japan (INCJ), a government-backed investment fund that planned to pay about ￥300 billion. [FULL STORY]