The long-trapped Japanese electronics maker Sharp has announced which takeover bid it has accepted. Both Taiwan's Hon Hai Group and the Innovation Network Corp of Japan had expressed interest.
The company held a presser on Thursday to introduce its performance for the first three quarters of last year. But the media focus was more on the takeover announcement.
It was just a normal presser for Sharp, but the media flocked in with questions on the takeover bids from Taiwan's Hon Hai Group, also known as Foxconn, and a state-backed Japanese fund, the Innovation Network Corporation of Japan.
At the end of January, Hon Hai increased its bid from 600 billion yen to 700 billion, much higher than its competitor's 300 bln offer. Sharp recognised it as an offer it couldn't refuse.
"For Sharp's employees and shareholders, the higher takeover price means more value. That was a consensus reached in today's board meeting," said Kozo Takahashi, CEO, Sharp Corp..
As well as the higher offer, Hon Hai's takeover plan emphasizes that it will keep Sharp's current management members in their positions. The long cooperation between the two companies is also an attractive feature.
"Hon Hai has strong production and component purchase capabilities. It will bring great combined effects," Kozo said.
When asked how Sharp can protect the designs of its cutting edge technology, CEO Kozo Kakahashi said both Hon Hai and Sharp have worked together since 2012 in an Osaka factory and the two sides have built up a mutual trust in the past years.
Meanwhile, the Innovation Network Corporation of Japan has planned to integrate Toshiba and Sharp's home appliances sectors. If it loses the battle, the plan will be in vain.
