updated 04:45 pm EDT, Tue April 10, 2012
Sharp looks to sell new shares of $4b Sakai plant
Japanese LCD panel maker Sharp revealed on Tuesday that it is negotiating with suppliers Toppan Printing and Dai Nippon Printing on the sale of new shares of its main LCD manufacturing plant in Sakai. Exactly how much money each will contribute and what their stake in the plant will be remains to be seen, however. Taiwan's Hon Hai has a majority 46.48 percent stake in the plant as of last month, which is said to be the country's most advanced LCD plant.
Sharp's stake is less than 40 percent, while Sony holds a seven percent stake in Sakai, though it doesn't plan to increase that stake.
The display maker has also revised its loss estimate for the year, now at a net deficit of 380 billion yen (about $4.8 billion), or more than its estimate of 290 billion yen back in February. The plant cost $4 billion to build but is operating at below its break-even capacity.
Japanese electronics makers have been struggling with profits and earnings due to the relatively high yen exchange rate, added competition, and slumping demand for electronics. Sharp will report final fiscal 2011 financial results later in April. [via Reuters]