Sharp to sell off businesses, says Nikkei
Struggling Sharp has denied reports in Japan’s Nikkei newspaper that it will start selling off its businesses. One of the businesses specified was a lithium-ion battery business. it may also sell its stake in Olympus.
Sharp, which is losing money heavily in the TV business, is in the throes of a long negotiation with Foxconn, the Chinese contract manufacturing company, for Foxconn to take a 10% stake in Sharp.
The deal was done and then, while still being considered by regulators, was opened for re-negotiation after Sharp’s share price dropped by two thirds..
Sharp, has to raise $3.8bn to $5bn to redeem debt obligations coming due next year which is putting the company under pressure to raise cash.
Sharp has forecast a loss of $3bn for the current fiscal year and plans to cut 5000 jobs.