Foxconn pips Japan state fund to acquire Sharp

Tokyo

FOXCONN Technology Group, which battled a Japanese government-backed fund for Sharp Corp, will take a majority stake in the struggling electronics company. The shares slumped as much as 17 per cent.

Foxconn, the parent of Hon Hai Precision Industry Co, will control 65.9 per cent of Sharp after buying stock, the Osaka-based company said in a filing on Thursday. Sharp accepted the offer over one from state-backed Innovation Network Corp of Japan (INCJ).

Saddled with debt and struggling with chronic losses, the board of the century-old consumer electronics maker had to choose between INCJ's plan to restructure by spinning off businesses, or staying whole under a foreign parent. Foxconn, the main assembler of Apple Inc's iPhone, is set to take over one of the largest sup…