Future of Sharp-Sony JV clouded
Published: Mar 30, 2012
JOINT VENTURE MANUFACTURING ELECTRONICS
Japan - Sharp Corporation and Sony Corporation are reviewing their joint venture agreement, which could possibly end the partnership that kicked off in 2009.
With the current amendment, Sharp may be forced to acquire all of Sony's shares in SDP before the contract ends. This is due to Sharp transferring its shares to a third party, as stated in Sharp's press statement.
Various reports revealed the third party is Hon Hai Precision Industry, a Taiwan-based manufacturer of electronic products, including Apple gadgets.
The amendment addresses possible further contributions by Sony to Sharp Display Products Corporation (SDP), as discussed previously in April last year. However, these contributions will not see Sony adding more to their initial capital in the joint venture.
Additionally, the parties have also agreed to extend the time period of the contract to the end of September this year, allowing them them more time for the evaluation of the joint venture and its future direction. This includes discussion of Sony's shares in SDP and possible purchases of large-sized LCD panels and modules.
The agreement, executed in July 2009, allowed both electronic companies to produce and sell large-sized LCD panels and modules.
The joint venture between Sony and Sharp arose in 2009 when Sony transferred its LCD panel plant to SDP, thereafter investing 10 billion yen in exchange for 7.04% of SDP's shares. Both companies have since been in discussion about possible further contributions by Sony.
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Japan - Sharp Corporation and Sony Corporation are reviewing their joint venture agreement, which could possibly end the partnership that kicked off in 2009.
With the current amendment, Sharp may be forced to acquire all of Sony's shares in SDP before the contract ends. This is due to Sharp transferring its shares to a third party, as stated in Sharp's press statement.
Various reports revealed the third party is Hon Hai Precision Industry, a Taiwan-based manufacturer of electronic products, including Apple gadgets.
The amendment addresses possible further contributions by Sony to Sharp Display Products Corporation (SDP), as discussed previously in April last year. However, these contributions will not see Sony adding more to their initial capital in the joint venture.
Additionally, the parties have also agreed to extend the time period of the contract to the end of September this year, allowing them them more time for the evaluation of the joint venture and its future direction. This includes discussion of Sony's shares in SDP and possible purchases of large-sized LCD panels and modules.
The agreement, executed in July 2009, allowed both electronic companies to produce and sell large-sized LCD panels and modules.
The joint venture between Sony and Sharp arose in 2009 when Sony transferred its LCD panel plant to SDP, thereafter investing 10 billion yen in exchange for 7.04% of SDP's shares. Both companies have since been in discussion about possible further contributions by Sony.
______________________________________________________________________________
Managing people? For HR and leadership strategy, Human Resources has it covered.
Get your marketing department up to speed with Asia's most read marketing site
marketing-interactive.com.
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