Hon Hai yet to resubmit Sharp application: IC
By Camaron Kao, The China Post
August 31, 2012, 12:09 am TWN
The China Post--The Investment Commission (IC, 投資審議委員會) stated yesterday that Hon Hai Precision Industry Co., Ltd (鴻海精密工業) is yet to resubmit its application to invest in Sharp.
Investment Commission spokesperson Emile Chang (張銘斌) stated that Hon Hai has withdrawn its previous application for investing in the Japanese firm. The ratification process will start after Hon Hai resubmits the application.
Hon Hai stated that the negotiations between Sharp and the company are still ongoing. Thus, the company did not apply again.
Hon Hai Chairman Terry Gou (郭台銘) yesterday did not show up in the tour of 10th-generation panel factory invested in by Hon Hai and Sharp in Osaka, Japan, contrary to speculation that Gou would sign the acquisition contract with representatives of Sharp at the venue.
Hon Hai stated that the chairman had to accompany former Vice President Vincent Siew (蕭萬長) to another visit and cannot come to the factory. As for the acquisition, Hon Hai stated that the talks have not reached the final stage and the company will not close the deal in haste.
Hon Hai announced in June that the company will purchase shares of Sharp for 550 yen per share. The stock price of Sharp tumbled after the announcement due to Sharp's excessive inventory and decreasing sales.
Gou stated in August that Sharp proposed that the trading price can be renegotiated and Sharp will retain 9.98 percent of its shares in Hon Hai.
Gou had previously made a public announcement that he hoped the acquisition could be completely wrapped up by March 2013.