Sharp Rubbishes Rumors about Spin off of LCD Business
Published By : 20 Mar 2015 | Published By : QYRESEARCH
The Japanese electronics company Sharp Corp. which has treaded along a rather rough growth path over the past some days and is making losses has announced that the company is not considering to spin off its liquid crystal display business as a part of a bailout plan. The company is discussing the bailout plan with its lenders is on a lookout for restructuring moves in return to extension of support.
Sharp said about the rumors that it was planning to sell its liquid crystal display business to overcome the losses said that no such statement was announced by the company nor was it something that the company was even considering any sooner. Sharp issued this statement after news got published in the Sankei daily newspaper that the company is planning to spin off the liquid crystal display business.
Sankei's news report was followed by many other media coverage about the expected changes at the company, including the company’s possible exit from the TV manufacturing market of North America, in return for a bailout by financers and banks.
Sharp will probably take the move to reduce its workforce in a big global restructuring of the company that is expected to cost the company more than US$1.7 billion. A person familiar with the matter spoke that the company will likely reduce the workforce by as much as 12 per cent in the near future.
Sharp’s chief executive Kozo Takahashi was reportedly negotiating about the terms of plan to rescue the debts from the Bank of Tokyo Mitsubishi UFJ and Mizuho Bank. Bank of Tokyo Mitsubishi UFJ is a part of the Mitsubishi UFJ Financial Group and Mizuho Bank is a part of the Mizuho Financial Group. This would be Sharp’s second major bailout since the year 2012 and comes after the company had warned last month of its third annual loss in about four years.