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Qualcomm completes ¥10.89 billion investment in Sharp

Kyodo

Sharp Corp. on Monday received the second half of Qualcomm Inc.’s ¥10.89 billion investment and completed procedures for forming a capital alliance on developing new display panels, the struggling electronics maker said.

The investment turned the U.S. telecommunications technology company into Sharp’s third-biggest shareholder, with a 3.53 percent stake.

The roughly ¥5.9 billion second payment hinged on whether a concrete plan for developing a next-generation Micro Electro Mechanical System display could be drawn up. The first payment of around ¥4.9 billion was delivered in December.

Sharp sold 11.87 million shares to Qualcomm for ¥502 each. It also said that it is ready to sign an agreement with its creditors Tuesday to take out a fresh syndicated loan of ¥150 billion, and to extend the repayment deadline set Sunday for a ¥360 billion loan.

Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ offered Sharp a total of ¥360 billion in loans in September last year. The new repayment deadline will be set on March 31, 2016, Sharp said.

As for the new credit line, the two banks initially considered setting up a ¥100 billion credit line but decided to expand the amount.