Sharp Corp. and Hon Hai Precison Industry Co. on Friday signed a contract granting the Taiwan electronics giant preferential rights to negotiate over a bailout plan for the struggling Japanese company.
"I've signed a contract with Sharp granting us preferential rights for negotiations," Hon Hai Chairman Terry Gou said Friday evening after holding talks with Sharp Corp. President Kozo Takahashi and others over assistance for the Japanese electronics manufacturer at Sharp's head office in Osaka.
Showing reporters their signatures on the last page of the contract document, Gou said he and Takahashi agreed on a plan to proceed with negotiations over Hon Hai's rescue plan for Sharp and aim to ink a final contract on Feb. 29. There are several legal problems to be overcome before the signing, Gou said.
In March 2015, when the Japanese electronics maker again ran into financial difficulties, Hon Hai declared a bid to help Sharp ahead of others. However, Sharp could not move past its distrust of the Taiwan company, which had reneged on a 2012 pledge to Sharp to invest ¥66.9 billion.
Along with its creditor banks Mizuho Bank and the Bank of Tokyo-Mitsubishi UFJ, the Japanese firm focused on negotiations with the Innovation Network Corporation of Japan (INCJ). At a press conference on Thursday, however, Sharp suggested that it had become closer to Hon Hai than the INCJ. The Taiwan firm has worked hard to recoup lost ground, sources said.
In mid-January, Hon Hai sharply increased the value of its proposed assistance to Sharp from ¥500 billion to a maximum of ¥700 billion, which is equivalent to 2.5 times Sharp's total market value as of Thursday.
Firefighters battled an apparent engine fire Friday on a Korean Air jet on the tarmac at Haneda Airport in Tokyo. All the passengers and crew were evacuated unharmed, Japanese media reported. (Japan Today)
The Japan Meteorological Agency has announced its three-month forecast from the month of June until August. This summer, while sweltering temperatures will be experienced nationwide, western Japan, in particular, will be hit by an intense heat wave, the agency said. (Japan Today)
Japanese Prime Minister Shinzo Abe on Wednesday made a pilgrimage to the Ise Grand Shrine, the holiest site in Japan's Shinto religion, a day before he hosts a Group of Seven (G-7) summit nearby. (Japan Today)