Sharp has announced it has decided to issue new shares through a third-party allotment to Samsung Electronics Japan, a Japan-based corporation of Samsung Electronics, and form a capital alliance with Samsung Electronics Japan.
Sharp will receive capital investment of approximately JPY10.4 billion (US$110 million) from Samsung Electronics Japan and will issue new shares equivalent to 3.08 % of the voting rights after the investment, or 3.04% if calculated based on the issued shares.
The purpose of this third party allotment capital increase is to build up a mutual trust relationship toward increasing the corporate value of Sharp and Samsung Electronics in the LCD market, and enhance Sharp's capital, said Sharp.
Through the capital alliance, Sharp is going to further strengthen the alliance and continuously provide a long-term, stable and timely supply of LCD panels for large-size TVs and small- to medium-size LCD panels for mobile devices such as notebook computers, added Sharp.
Article translated by Alex Wolfgram
