Innovation Network Corp. of Japan is making the case to Sharp Corp. that its rescue proposal for the electronics maker is worth more than an offer from Foxconn Technology Group, a sign the government fund is determined to keep fighting for victory in the takeover battle.
The state-backed fund proposed a package of cash, asset sales and support from lenders that it says is worth 1 trillion yen ($8.5 billion), according to documents INCJ presented to Sharp and obtained by Bloomberg News. Foxconn is offering about 660 billion yen for the company, a person familiar with the matter has said.
INCJ’s proposal included a 300 billion yen cash infusion for Sharp as well as 350 billion yen in support from its lenders, according to the documents. The fund also proposed raising 150 billion yen from its stake in Sakai Display Products Corp. and 200 billion yen in financing.
“Money matters, but what’s important is the company’s long-term viability,” said Yasuaki Kogure, chief investment officer at SBI Asset Management Co. “Beyond the money amounts, the questions that need answering are about Sharp’s restructuring.” read more here