Sharp receives fresh capital from Qualcomm
OSAKA - Struggling Sharp Corp. said Thursday it has received around 4.9 billion yen (around $57.2 million) from Qualcomm Inc. under their capital alliance agreement, in which the Japanese firm will receive up to 9.9 billion yen from the U.S. telecommunication product maker through third-party allotments of new shares.
Sharp is expected to receive the rest of the amount by the end of March under certain conditions, including that it return to the black on an operating basis in the second half of the 2012 business year.
Sharp and Qualcomm said earlier in December they had signed a capital alliance agreement, under which Sharp will jointly develop next-generation energy-efficient display panels with Pixtronix Inc., a Qualcomm subsidiary.
Sharp, which aims to turn its business around by expanding its supply of advanced power-saving liquid crystal display panels, is also continuing talks with Taiwanese business partner Hon Hai Precision Industry Co. on a capital tie-up deal.