Sharp’s The Word For In The Claggy
Renesas is not the only Japanese company in the claggy. Sharp has debts of $12.76 billion, $9 billion of which mature withing a year, and cash of $2.75bn, according to Bloomberg, and is seeking to shrink its workforce by another 3,000 employees on top of the 5,000 lay-offs announced earlier this month.
The company is currently forecasting a $3.2 billion loss for the year.
Sharp has been trying to sell a 10% stake in the company to Foxconn, the China contract assembly company, but Foxconn has insisted on a renegotiation of the deal as Sharp’s shares have kept falling.
It is said that the original price of 550 Yen making the 10% stake worth $67 billion Yen has been renegotiated to be the ‘average’ price of Sharp shares, now at under 200 Yen.
Sharp has been reported as trying to sell its TV flat panel plants in Mexico and China to Foxconn. It is also said to be considering selling its copier business, its air conditioning business, a Japanese display factory and its Japan-based solar-battery plant.
Of the $12.76bn debt, $4.25bn is said to be short-term debt repayable within a year; $4.56bn is commercial paper; $2.39bn is in the form of corporate bonds; and $1.56bn is long-term debt.