Sharp to raise funds through share sale

By IVCPOST Staff Reporter

Aug 01, 2013 01:03 AM EDT

The Nikkan Kogyo newspaper said that Sharp Corp is planning to raise an estimated JPY100 billion or US$1 billion through a share sale. Sharp said that no decision has been made regarding the capital that they would need and that they are still considering other possible ways to raise the needed funds.

"If Sharp is really doing a public offering, it should be a sell," said Toshikazu Horiuchi, market analyst at Iwai Cosmo Holdings Inc. in Tokyo. "There are clouds over Sharp amid concerns about outlook for Samsung, which is essential for Sharp."

Sources are saying that Sharp is in talks with Denso Corp regarding a JPY2 billion investment. Sharp cut jobs and sold its stakes to Qualcomm Inc and Samsung Electronics Co to raise funds after posting an estimated JPY921 billion loss in the previous two financial years. Last May, Sharp announced that they have entered an informal agreement with Mitsubishi UFJ Financial Group Inc and Mizuho Financial Group to continue JPY360 billion worth of loans. Sharp agreed to acquire a JPY150 billion debt loan to redeem its convertible bonds.

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