Japan Display Inc. said Thursday it will secure a capital injection from a Chinese-Taiwanese consortium next month.
The struggling display-maker, which is a supplier to Apple Inc., has been told by the consortium that a formal decision on the financial aid will be reached by June 14.
The consortium, which includes China’s Harvest Tech Investment Management Co. and Taiwanese panel-maker TPK Holding Co., had delayed an investment of up to ¥80 billion ($730 million) agreed under a bailout plan, in order to reassess the business prospects of Japan Display.
The Japanese firm also said it would receive additional financial assistance from state-backed fund INCJ Ltd.
It will sell all of its 27.2 percent stake in JOLED Inc., an affiliate that makes advanced displays, to INCJ. In exchange, the fund will cancel a debt of around ¥45 billion.
Japan Display will also convert an additional ¥27 billion in long-term loans from INCJ to preferred shares as part of the assistance.
Japan Display said it has also asked Apple for concessions on repayment of part of its debt from the U.S. firm.
Japan Display was established in 2012 following the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp. with support from INCJ.
However, the display-maker logged a group net loss for the fifth straight year in fiscal 2018 through March amid intensified competition from Chinese and South Korean rivals. It announced earlier this month it will cut about 1,000 jobs, or about 10 percent of its global and group workforce.
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