Sharp Enters Into Capital Alliance With Hon Hai
Tuesday, April 5, 2016
Hon Hai/Foxconn and Sharp Corp. have announced the strategic alliance of two companies.
The tables below provide details regarding this strategic investment.
Issuance of new Common Shares
|Investment Entity||Shares||Shareholding (%)||Amount (yen)|
|Hon Hai Precision Industry||1,300,000,000||26.14%||114,400,000,000|
|Foxconn (Far East) Ltd.||915,550,697||18.41%||80,568,461,336|
|Foxconn Technology Pte. Ltd.||646,400,000||13%||56,883,200,000|
|Sakai International Holdings Ltd.||420,000,000||8.45%||36,960,000,000|
|Total||3,281,950,697||66%||288,811,661,336 (88 yen per share)|
Issuance of new Class C Preferred Shares
|Investment Entity||Shares||Amount (yen)||Other|
|Hon Hai Precision Industry||11,363,636||99,999,9996,800||Can convert to common shares at 1:100 conversion rate in July 1, 2017|
The companies are confident about their future together, as both Foxconn and Sharp have been working very closely since 2012.
"I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp," said Terry Gou, founder and CEO, Foxconn. " We have much that we want to achieve and I am confident that we will unlock Sharp's true potential and together reach great heights."
"I am pleased with our decision today to form a strategic alliance and merge both forces between Sharp and Foxconn to accelerate innovation with the '"creativity and entrepreneurial spirit' of both our companies," said Kozo Takahashi, president and CEO, Sharp.
Other details of the alliance:
- Sharp will remain "Sharp." It will continue to be a company traded on the Nikkei. "Sharp" is not gone; it has new shareholders.
- Sharp will keep its management structure.
- Hon Hai is big in IT and B2B. It is deeply entrenched in the manufacturing of B2B products for many leading IT companies in the world. Access to this scale and technology is a huge opportunity for Sharp and its dealers and is transformative for the industry.
- Hon Hai is ranked 31st on the 2015 Fortune Global 500 List. Sharp is ranked 470. Of Sharp's main competitors, only Canon (334) and Toshiba (157) are ranked. This combination of IT manufacturing is larger than Sharp's top five competitors combined. Last year, Hon Hai recorded $139 billion in revenue and Sharp had $25 billion.
For more information on the alliance, visit http://siica.sharpusa.com/Capital-Alliance.