Japan's loss-making Sharp says banks to provide US$1.7b bailout
[TOKYO] Japan's loss-making Sharp Corp said it had secured a US$1.7 billion bailout from banks, its second major rescue in three years, after its smartphone display business came under intense pricing pressure from Asian rivals.
Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ will inject a combined 200 billion yen in a debt-for-equity swap, Sharp said in a statement, a move that will buy it time but is unlikely to allay worries about the long-term viability of its display business.
A corporate turnaround fund, Japan Industrial Solutions, will also provide 25 billion yen in funding, the company said.
In return, Sharp will embark on further restructuring that will include cutting 10 per cent of its global workforce, including about 3,500 jobs in Japan.
It reported a net loss of 222.35 billion yen (S$2.46 billion) for the past financial year, its third loss in four years.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
HCA beats first-quarter profit estimates on higher patient admissions
US FDA approves Pfizer’s gene therapy for rare bleeding disorder
EU toughens rules on Chinese fashion retailer Shein
Best World under fire from shareholders at AGM over dividends, director salaries
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue