Sharp aims to raise $1 billion from share sales by end-Sept: Kyodo

Reuters News
Posted: Jul 18, 2013 3:53 PM

TOKYO (Reuters) - Japan's Sharp Corp is aiming to raise 100 billion yen ($1 billion) from share sales by the end of September as the struggling display maker looks to partnerships and a public offering to bolster its finances, media reports and sources familiar with the situation said on Friday.

The company plans a public offering of 90 billion yen by end-September, Kyodo news agency reported, while two sources familiar with the matter said it plans to raise 10 billion yen through a share sale to housing appliance maker Lixil Group Corp.

Sharp is also sounding out other companies including power tools maker Makita Corp to buy shares, the sources told Reuters.

The Osaka-based company, which supplies display panels for Apple Inc's smartphones, received a $4.6 billion rescue from banks last year and has since received investments from Samsung Electronics Co Ltd and Qualcomm Inc.

Japanese media have flagged the possibility of a public offering this year although the specific timing had remained unclear before Friday's mention of an end-Friday target.

Shares in Sharp rose more than 5 percent in morning trade on Friday to 490, their highest in seven weeks. They have gained nearly 15 percent over three days.

The company said in a statement nothing had been decided regarding a public share offer or a share sale to companies.

Sharp has forecast an 80 billion yen operating profit for the year to next March 31, after logging a 146.27 billion yen operating loss last year.

($1 = 100.62 Japanese yen)

(Reporting by Reiji Murai and Nobuhiro Kubo; Additional reporting by Neha Alawadhi in Bangalore; Editing by Stephen Coates)