Business / Corporate

Chinese fund Harvest Tech to raise investment in Japan Display to ¥64 billion

JIJI

Japan Display Inc. said Wednesday that Chinese investment fund Harvest Tech Investment Management Co. will increase its investment in the ailing Japanese company to a maximum of ¥64 billion.

JDI reached a basic agreement in April to receive up to ¥80 billion in financial support from a China-Taiwan consortium, including Harvest Tech.

Harvest Tech’s investment plan apparently takes into consideration the possible withdrawal of Taiwanese financial group Cosgrove Global Ltd. from the consortium.

The Japanese maker of small and midsize liquid crystal display panels hopes that a formal decision on the investment will be made by June 27.

On Monday, JDI said that TPK Holding Co., a Taiwanese maker of touch screens, will leave the three-company consortium and that Oasis Management Co., a Hong Kong investment fund, will join the group in its place.

The screen-maker also said that Harvest Tech will increase its investment amount.

While Cosgrove Global has not clarified whether it will continue to support JDI, the announcement on Wednesday revealed that Harvest Tech will shoulder much of the Taiwanese financial group’s investment.

Harvest Tech’s influence in JDI’s management is expected to grow, including an increase in the number of board members sent from the Chinese company to the Japanese firm.

JDI plans to continue talks with TPK on sales of LCDs and a technology tie-up.

It is also expected to continue to discuss plans to build an organic light-emitting diode panel plant in China together with Harvest Tech.