Sharp issues 450 million new shares in fundraising- sources

By IVCPOST Staff Reporter

Sep 17, 2013 06:35 AM EDT

Sources told Reuters that Sharp Corp would be issuing 450 million new shares to raise funds. According to two people with knowledge of the matter, the shares would be made through a public offer. Members of the board were slated to approve the share issue this week as part of the company's plan to raise USDs 1.7 billion to stabilize the Japan-based firm's finances.

The most recent public share offering sought to raise USD 1.52 billion or JPY 150 billion. Allotment from third parties would raise JPY 20 billion. According to sources, only companies with close relations to Sharp would be included in the third party share placement. Makita Corp, Lixil Group and Denso Corp were expected to participate in the fundraising.

Last year, Sharp obtained a bank bailout to avert going under, Reuters reported. However, some investors of the LCD maker were apprehensive that stiff competition from Chinese and other rivals would spoil Sharp's attempt of a recovery.

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