In order to make up for the mistakes made in the investment decision four months ago, Guo Taiming, the chairman of Hon Hai Group, wanted to restart the negotiations, but the statements issued by Hon Hai and Sharp were completely opposite.
Hon Hai Precision announced on August 3 that Japan’s Sharp has agreed that Hon Hai does not have to fulfill the investment agreement reached between the two parties on March 27. According to the agreement, Hon Hai Precision will acquire a 10% stake in Sharp at a price of 550 yen/share (about US$7/share) for a total purchase price of 66.9 billion yen (about 850 million US dollars). However, the acquisition agreement is still awaiting approval from the Chinese Taiwan regulatory authorities.
On the second day after Hon Hai’s statement, Hon Hai’s spokesperson said that Hon Hai and Sharp’s high-level leaders had reached a consensus that the two sides would wait for Sharp’s share price to stabilize and restart negotiations on prices. However, after Hon Hai initiated the two parties to suspend the acquisition agreement on March 27, Sharp spokesman said that Sharp did not plan to adjust the transaction purchase price.
The two opposite statements made by Hon Hai and Sharp on the acquisition deal surprised investors. A securities analyst speculated that this phenomenon may be caused by the delay in information transmission in Japan's Sharp.
According to a person familiar with the matter, Guo Taiming has been mediating in Japan recently. The consensus between Hon Hai and Sharp to restart negotiations was reached on August 3, and Guo Taiming announced the news to his subordinates. Guo Taiming is eager to publicly restart the negotiation consensus or the consideration of Hon Hai’s 80-yuan NT dollar share price “defense warâ€, which is intended to make Hon Hai’s share price “stop fallingâ€.
Since the announcement of the acquisition intention on March 7, Sharp's share price has fallen by nearly 65%, and Hon Hai's share price is also falling due to the collateral effect of Sharp's investment intention relationship. On August 3, Sharp released its second-quarter quarterly report. On the same day, Hon Hai’s share price fell nearly NT$80. Hon Hai’s Honghai, Hongjun, Chimei, Guangyu, Jianhan and other companies fell in one-day market value. Going to nearly 47.5 billion Taiwan dollars.
The financial report shows that Sharp's loss in the second quarter of this year reached 1.764 billion US dollars, and it is expected that the loss for the whole year will reach 3.1 billion US dollars. After the earnings report, Sharp's share price fell 28% on August 3, creating a new low for Sharp's 38-year share price. On the same day, Standard & Poor's downgraded Sharp's credit rating to "BBB", equivalent to the level of subordinated debt.
Some analysts pointed out that the resumption of negotiations between Hon Hai and Sharp is undoubtedly a bullish for Hon Hai and a bad for Sharp, which has made Hon Hai an active position at the negotiating table.
In order to cut costs and reduce debt, Sharp has launched a layoff plan of up to 5,000 people. This is the first time that Sharp has taken such a large-scale layoff in the past 60 years.
A spokesman for Hon Hai said that he hopes that the two sides will start a new acquisition negotiation as soon as possible in the next month to one quarter. However, as of now, Japan's Sharp has not changed their "unadjusted purchase price" statement.
Hon Hai Precision announced on August 3 that Japan’s Sharp has agreed that Hon Hai does not have to fulfill the investment agreement reached between the two parties on March 27. According to the agreement, Hon Hai Precision will acquire a 10% stake in Sharp at a price of 550 yen/share (about US$7/share) for a total purchase price of 66.9 billion yen (about 850 million US dollars). However, the acquisition agreement is still awaiting approval from the Chinese Taiwan regulatory authorities.
On the second day after Hon Hai’s statement, Hon Hai’s spokesperson said that Hon Hai and Sharp’s high-level leaders had reached a consensus that the two sides would wait for Sharp’s share price to stabilize and restart negotiations on prices. However, after Hon Hai initiated the two parties to suspend the acquisition agreement on March 27, Sharp spokesman said that Sharp did not plan to adjust the transaction purchase price.
The two opposite statements made by Hon Hai and Sharp on the acquisition deal surprised investors. A securities analyst speculated that this phenomenon may be caused by the delay in information transmission in Japan's Sharp.
According to a person familiar with the matter, Guo Taiming has been mediating in Japan recently. The consensus between Hon Hai and Sharp to restart negotiations was reached on August 3, and Guo Taiming announced the news to his subordinates. Guo Taiming is eager to publicly restart the negotiation consensus or the consideration of Hon Hai’s 80-yuan NT dollar share price “defense warâ€, which is intended to make Hon Hai’s share price “stop fallingâ€.
Since the announcement of the acquisition intention on March 7, Sharp's share price has fallen by nearly 65%, and Hon Hai's share price is also falling due to the collateral effect of Sharp's investment intention relationship. On August 3, Sharp released its second-quarter quarterly report. On the same day, Hon Hai’s share price fell nearly NT$80. Hon Hai’s Honghai, Hongjun, Chimei, Guangyu, Jianhan and other companies fell in one-day market value. Going to nearly 47.5 billion Taiwan dollars.
The financial report shows that Sharp's loss in the second quarter of this year reached 1.764 billion US dollars, and it is expected that the loss for the whole year will reach 3.1 billion US dollars. After the earnings report, Sharp's share price fell 28% on August 3, creating a new low for Sharp's 38-year share price. On the same day, Standard & Poor's downgraded Sharp's credit rating to "BBB", equivalent to the level of subordinated debt.
Some analysts pointed out that the resumption of negotiations between Hon Hai and Sharp is undoubtedly a bullish for Hon Hai and a bad for Sharp, which has made Hon Hai an active position at the negotiating table.
In order to cut costs and reduce debt, Sharp has launched a layoff plan of up to 5,000 people. This is the first time that Sharp has taken such a large-scale layoff in the past 60 years.
A spokesman for Hon Hai said that he hopes that the two sides will start a new acquisition negotiation as soon as possible in the next month to one quarter. However, as of now, Japan's Sharp has not changed their "unadjusted purchase price" statement.
The FirstPower High Rate Discharge Battery is desgined for apllcation as High Rate Discharge. This series is a high energy, high intensity, and high quality output electrical energy product series with 20% more energy density than same volume products at high rate discharge characteristics.
We welcome orders with "FirstPower" brand; We are also flexible to accept orders on OEM basis. Contact us now! Your partnership with FirstPower will prove worthy of it.
High Rate Discharge Battery
High Rate Discharge Battery,High Discharge Rate Lipo Battery,Smart High Rate Discharge Battery
Firstpower Tech. Co., Ltd. , https://www.firstpowersales.com