Sharp Corp. is considering reviewing the terms of Hon Hai Precision Industry Co.'s investment in the company in light of the share price plunge triggered last week by its expanded loss projection, sources close to the matter said Monday.
Under a capital alliance agreement in March, the Taiwanese firm agreed to acquire a 9.9 percent stake in the Osaka-based company by paying ¥550 per share. But in the wake of Sharp's share price plunge to ¥192 on Friday, Hon Hai — better known internationally by its trading name Foxconn — announced it had agreed with Sharp to review the arrangement. Hon Hai supplies key components used in iPhones and other Apple Inc. products.
Sharp is likely to renegotiate the terms of the deal by letting Hon Hai buy the shares at a lower price, the sources said. But Sharp said immediately after the announcement that there was no agreement as of Friday.