updated 06:57 am EST, Wed March 6, 2013
Deal sees Samsung own over 3-percent of Sharp
Sharp has received an investment of 10.4 billion yen ($112 million) from Samsung, in exchange for shares. The deal, confirmed through Sharp in a statement, sees Samsung taking ownership of newly-issued shares from the company, giving it the equivalent of 3.08-percent of the overall shareholder voting rights.
The agreement will allow the two companies to build a "mutual trust relationship" in the field of LCD screens, as well as helping provide Sharp with more capital. Though already supplying LCD panels to Samsung, the deal would allow Sharp to be a more-stable supplier for the long term, and in turn would likely be a source of cheap components for Samsung's larger TVs, notebook computers, and mobile devices.
The deal is remarkably similar to one Sharp made with Qualcomm last year, where 9.9 billion yen ($120 million at the time) was exchanged for a stake in Sharp. The two companies would also work together on Sharp's IGZO-based display technology in small and medium-sized LCD panels.