Debt-laden Japanese consumer electronics maker Sharp Corp is exploring sale of its holding in the Indian unit, among other options, the unit said in a BSE filing.
The move comes at a time when the parent company is exploring various options for its loss-making liquid crystal display business. The parent company has lost more than 1.2 trillion yen during the past four financial years.
In a stock exchange filing, Sharp India said it had called for a board meeting on December 12 to permit the parent and potential buyers to conduct due diligence on the operations of the company. However, it did not name the suitors. As per the share holding patterns, Sharp Corp owns 75 per cent of Sharp India as of September end.
As per international media reports, the parent company wants to sell its stake in the LCD business to Innovation Network Corp. of Japan, a fund backed by Japanese government, or to Foxconn Technology Group unit Hon Hai Precision Industry Co.
Sharp India has a manufacturing and R&D unit in Pune. The manufacturing plant makes televisions, air-conditioners, refrigerators and microwave ovens. Sharp has three companies in India. Besides the listed Sharp India, which is into manufacturing, it has two wholly owned subsidiaries- sales and marketing arm Sharp Business System and research arm Sharp Software Development. Sharp India reported revenue of Rs 189.04 crore in fiscal 2015.
Replying in an email statement, Foxconn said, “As a matter of company policy, we do not comment on rumours or speculation”, Foxconn Technology Group said.
