The head of Japan’s state-backed corporate turnaround fund said Friday its proposal to help Sharp Corp. compares favorably with a rival offer from a Taiwanese company.
Toshiyuki Shiga, chairman and chief executive officer of the Innovation Network Corporation of Japan, stressed that its plan goes beyond Sharp’s revival and involves a domestic industry realignment, adding the rescue plan proposed by Taiwan’s Hon Hai Precision Industry Co. is “completely different.”
“What we have proposed is a plan that is not only good for Sharp and its shareholders, employees and customers, but also for Japan’s future growth,” Shiga told a news conference in Tokyo.
The INCJ is planning to spin off Sharp’s money-losing liquid crystal display business and integrate it with Japan Display Inc., in which the fund has a stake.
The fund also eyes a merger of Sharp’s home appliance business with that of Toshiba Corp.
Sharp President Kozo Takahashi said earlier in the month that the breakup of Sharp would not be an option and that it was putting more focus on Hon Hai’s rescue offer.
Shiga dismissed the view that the INCJ’s proposal is designed to prevent drainage of Sharp’s advanced technology from Japan.
“I have high hopes for (Sharp’s) LCDs” as the “Internet of Things,” a concept of connecting various products to the Internet, is expected to bring further growth in LCD demand, he said.
Hon Hai, which goes by the trade name Foxconn, is believed to have proposed investing around ¥700 billion in Sharp. Its Chairman Terry Gou has said the companies are close to a deal.