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Sharp lands $4.6 billion financial deal - stays afloat for now

Sharp confirms $4.6 billion financing deal, gets bailed out by Japanese investors

By Anthony Garreffa on Sep 28, 2012 02:28 am CDT - 0 mins, 53 secs reading time

Sharp have confirmed that they have closed an agreement which will see $4.6 billion in financing to help bail the Japanese company out of some serious financial problems. Sharp's investor site details the "working capital loan" will have Mizuho Corporate Bank and Bank of Toyota-Mitsubishi UFJ lend Sharp 180 billion yen.

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This is all part of a contract that ends on June 30 2013, including an equal sum in credit. Sharp was in dire need of this plan to move forward, who produces parts for Apple's iPhone 5, as well as many other products. Sharp are also still trying to ink an investment deal with Hon Hai that would see the Foxconn parent company take up a 9.9% stake in the company.

Sharp are still waiting for the Hon Hai deal to happen, and in the meantime have mortgaged nearly all of their Japanese factories, generating $1.92 billion in credit. By getting rid of their assets, Sharp hopes to generate around $2.74 billion by March 2013. On top of this, they have already culled 5,000 jobs, and are looking to get rid of another 11,000 staff soon.

Anthony Garreffa

ABOUT THE AUTHOR - Anthony Garreffa

Anthony is a long time PC enthusiast with a passion of hate for games to be built around consoles. With FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with high-end, custom-built PCs. His addiction to GPU technology is unwavering, and with next-gen NVIDIA GPUs about to launch alongside 4K 144Hz HDR G-Sync gaming monitors and BFGDs (65-inch 4K 120Hz HDR G-Sync TVs) there has never been a time to be more excited about technology.

NEWS SOURCE:thenextweb.com

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