One of the largest Japanese electronics makers, Sharp has been the cynosure of the Japanese business world for some time now. The Japanese electronics maker has been also undergoing some major problems with the number of their sales. Most of the parts of the problem are linked to the toiling economy that the world’s third-largest economy is going through. Even though there are some generous monetary policy measures granted to companies like Sharp, the industry still seems to tank under pressure. Sharp has been in the middle of a bidding war by various companies.
The bidding war
There are various holding companies that are now looking for buying out stocks in the Japanese firm. Some of the many investors that seek to carry out the deal are Hon. Hai Precision Industry Co. which has actively been pursuing the buyout. However, the current Sharp holding company Foxconn is still undergoing some final rounds of negotiations in order to reach a more conclusive decision. Foxconn has partnered with Sharp for a while now. It has always tried to retain the company under the umbrella brand, but due to Sharp’s struggling sales and marketing infrastructure, there have been quite a few problems within the firm.
Since sales figures have been difficult to push up in the market, there has always been a problem with for many companies to be able to financially back Sharp as a company. Sharp currently has over four billion dollar debts that it still owes to a lot of financial firms and banks as yet. Considering the company is undergoing a major business negotiation the banks have agreed to push back on the repayment of the loan by a few more months. This has provided the company with a lot more time and ease for the deal to finally be decided.
Foxconn did issue a statement mentioning that they would have a few more rounds of discussion and would try their best to ensure that the current partnership between them stays. However, financial analysts still differ on the stance of Foxconn. Many state that there will be a problem in the final closing of the deal. Experts are generally skeptical about the possibility of the extension of the deal and state that it is quite possible that Sharp may be taken over by the closest and highest bidder in the bargain.