Sharp Japan will reduce its capital at that of a … – The Tribune.fr

The weight loss program continues to Sharp. The Japanese electronics manufacturer will reduce its capital of 120 billion yen now (890 million euros) to 100 million yen (740,000 euros) or less, a decrease of approximately 99%, which nevertheless leave intact the rights shareholder voting.

The goal is to bring back this renowned company in a lower category, where the tax burden is lower, and in addition enable it to erase losses.

This movement, at least unusual for groups of size Sharp (over 20 billion euros in turnover) would be already validated by the banks that are more than parts involved in the management of the difficult situation of Sharp. This process, however, must be approved by the general meeting of shareholders in June.

stock market collapse

The action pioneering Japanese liquid crystal displays, plummeted 31 % (the maximum for the day) Monday morning at the Tokyo Stock Exchange after these announcements on its capital reduction.

Past of 80 to 178 yen (1.34 euros), the action Sharp n had not experienced such a dive for at least 40 years, according to calculations of the agency Bloomberg.

New restructuring plan announced Thursday, May 14

In addition to this capital reduction, the group is expected to unveil details of a bailout of 1.5 billion euros negotiated with its main creditors.

Moreover, a restructuring plan provides for the deletion some 5,000 posts and the split of her progress screens for smartphones, said last month a source close to the matter told Reuters

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Sharp affected by strong competition in Asia

On May 14 (Thursday) will also be the day of the announcement of the annual results Sharp. According to press reports, the group goes to report a net loss of 200 billion yen (over 1.5 billion) for the fiscal year completed in March and should not expect to get out of the red year.

Sharp was strongly affected by competition from Asian firms cheapest on the LCD display market and especially in the segment of smartphones and tablet screens, its main business.

(With AFP and Reuters)