Vertical Divider
Sharp Suspends Sale of Shares in Sakai
Last Friday Sharp cancelled the sale of its 1.03m shares (24.55% voting rights) in Sakai Display Products, to an undisclosed by ‘unaffiliated’ buyer. Sakai Display Products is the holding entity for Sharp’s Gen 10 LCD fab in Osaka, Japan. The company indicated that it is continuing discussions as to the sale of shares but gave no indication as to with whom or whether it was the same party previously noted (they have never disclosed same). Sharp noted that it will take a ~$145m loss associated with Sakai Display Products primarily due to Sakai’s impairment, which pushed the equity affiliate into a loss for the 3rd quarter (12/31/20) and was likely ‘clearing the decks’ for the share sale. Sharp facing an issue with inappropriate conduct by Kantatsu personnel from (and seconded from) Sharp and given the scandal and the insufficient management on Sharp’s part, we think the situation may be more serious than we had initially expected. We also take into account the cancellation of the sale of Sakai Display Products (even if Sharp is not responsible for the cancellation) and think that the company must carry out follow-up measures to ensure that investors and analysts are not left questioning the governance of Sharp and Hon Hai Group (the actual parent company). Source: SCMR, LLC
Figure 1: Notice of Cancellation of Sale of Sakai Display Products Corporation Shares-Sharp Corporation
Last Friday Sharp cancelled the sale of its 1.03m shares (24.55% voting rights) in Sakai Display Products, to an undisclosed by ‘unaffiliated’ buyer. Sakai Display Products is the holding entity for Sharp’s Gen 10 LCD fab in Osaka, Japan. The company indicated that it is continuing discussions as to the sale of shares but gave no indication as to with whom or whether it was the same party previously noted (they have never disclosed same). Sharp noted that it will take a ~$145m loss associated with Sakai Display Products primarily due to Sakai’s impairment, which pushed the equity affiliate into a loss for the 3rd quarter (12/31/20) and was likely ‘clearing the decks’ for the share sale. Sharp facing an issue with inappropriate conduct by Kantatsu personnel from (and seconded from) Sharp and given the scandal and the insufficient management on Sharp’s part, we think the situation may be more serious than we had initially expected. We also take into account the cancellation of the sale of Sakai Display Products (even if Sharp is not responsible for the cancellation) and think that the company must carry out follow-up measures to ensure that investors and analysts are not left questioning the governance of Sharp and Hon Hai Group (the actual parent company). Source: SCMR, LLC
Figure 1: Notice of Cancellation of Sale of Sakai Display Products Corporation Shares-Sharp Corporation
