Business / Corporate

Apple and Taiwan's Wistron offer direct investments to Japan Display

Kyodo

Apple Inc. and Taiwanese electronics giant Wistron Corp. have offered to provide funds directly to struggling Japan Display Inc. separately from the initial finance plan devised under the rescue framework involving Hong Kong’s Oasis Management Co., sources close to the matter said Friday.

The Japanese panel-maker has been seeking to rebuild its finances under a deal with consortium Suwa Investment Holdings LLC, which agreed on a capital injection of up to ¥80 billion ($740 million).

But the arrangements have raised doubts, and one of the investors, Harvest Tech Management Co. of China, withdrew in September.

Through Suwa Investment, Apple was to provide $200 million, Wistron $50 million and Oasis Management $180 million to JDI, which supplies liquid crystal display panels for Apple’s iPhones. Wistron assembles the devices.

JDI has said it aims to procure ¥50 billion by the end of November. According to one of the sources, it is also in talks with a financial institution on additional funding.

Last week, it said it will receive further financial support from Apple and other clients, with the U.S. tech giant speeding up payments for its products.

The ailing display-maker had a negative net worth of ¥77.2 billion as of late June. In fiscal 2018 ended in March, the company incurred a group net loss for the fifth consecutive year, hit by falling demand for iPhones.

Japan Display was established in 2012 through the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp., with support from the state-backed fund INCJ Ltd.

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