Business / Corporate

Japan Display may receive ¥80 billion bailout from China-Taiwan group

Kyodo

Japan Display Inc. is planning to receive a bailout of up to ¥80 billion ($724 million) from a group of Chinese and Taiwanese companies in a bid to improve its competitiveness against South Korean rivals, sources close to the matter said Tuesday.

The group, including China’s state-owned Silk Road Fund and Taiwan’s TPK Holding Co., which supplies touch panels for smartphones, is planning to own 30 to 50 percent of Japan Display, an Apple Inc. supplier, the sources said.

The two sides are still in discussions and aiming to reach an agreement by the end of March, according to the sources.

Japan Display intends to limit the group’s ownership to around 30 percent of shares but the group is hoping to obtain a majority stake, the sources said.

Japanese electronics makers have been facing fierce competition from South Korean rivals such as Samsung Electronics Co. in developing advanced display panels.

Japan Display has been making turnaround efforts with the help of Japanese government-backed fund INCJ Ltd., its biggest shareholder, with a 25.3 percent stake.

But it expects to book a net loss for the fifth consecutive year, due partly to slowing sales of display panels for Apple products.