Friday, March 22, 2013
DJ: Sharp Says Qualcomm Payment For New Sharp Share Issue Due June 28
TOKYO--Sharp Corp. (6753) said Friday that payment for a second equity investment by U.S. technology company Qualcomm Inc. is now scheduled for June 28.
In December, the struggling Japanese company reached an accord for an equity investment of up to Y9.9 billion from the U.S. company and the first round of the equity issuance worth Y4.9 billion took place at the end of December. But the second round of the new share issuance was pushed back from the previously determined deadline on March 29, since the two sides have yet to agree terms in ongoing talks.
Sharp has fallen on hard times, unable to maintain its competitive edge in the face of stiff competition with cheaper overseas rivals.
It has been in dire need of capital, prompting the company to decide to receive a lifeline from its rival Samsung Electronics Co. (005930.SE). The South Korean electronics conglomerate agreed to invest Y10.4 billion for about a 3% stake in Sharp.