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Foxconn postpones Sharp acquisition to evaluate new document

(Xinhua) Updated: 2016-02-27 11:02

Foxconn postpones Sharp acquisition to evaluate new document

Sharp Corp Chief Executive Kozo Takahashi is surrounded by the media as he leaves the company's headquarters in Tokyo, on Thursday, following reports of Sharp Corp agreeing to a takeover by Foxconn Technology Group. YUYA SHINO/REUTERS

TAIPEI -- Taiwan's Foxconn Technology Group said Friday that it would postpone signing an acquisition agreement with Japanese electronics company Sharp to evaluate a new "key document" from Sharp.

A circular issued by Sharp after a board meeting Thursday said the company would issue 3.28 billion new common stocks for Foxconn and its subsidiaries at a price of 118 Japanese yen ($1.04) per share. After the deal, Foxconn will hold 65.86 percent of Sharp.

"Sharp delivered a new key document to Foxconn on Feb 24. We notified Sharp on the same day that we must evaluate the content, and both sides reached a consensus about postponing the signing of the agreement," Foxconn said.

It added that Foxconn hopes to clear things up as soon as possible to bring a successful outcome to the deal.

Media reports said the new document listed Sharp's contingent liabilities of about 350 billion yen, posing future financial risks.

Sharp saw a loss of 108.3 billion yen in the April-December period of 2015 because of lackluster LCD (liquid crystal display) and solar power businesses.

In March 2012, Foxconn signed an agreement with Sharp to acquire 9.9 percent of Sharp at a total price of about 70 billion yen. The deal was not carried out as Sharp's performance deteriorated and stock price plunged.

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