Hon Hai seeks to reduce price it pays for Sharp: report

Tokyo

Hon Hai Precision Industry Co is seeking to reduce the amount it pays for Sharp Corp due to concerns about potential liabilities and future earnings, the Yomiuri newspaper reported. The Taiwanese company is also renegotiating terms with Sharp's lenders, according to the Nikkei newspaper.

Hon Hai's investment in new equity to be issued by Sharp may shrink by 10 per cent to 20 per cent from the originally agreed 489 billion yen (S$6 billion) as it cuts the price per share from 118 yen, the Yomiuri said, citing an unidentified person. Sharp's shares closed at 138 yen in Tokyo on Friday.