Japan Display considers deeper restructuring, seeks more funding: Nikkei

Reuters News
Posted: Jun 06, 2017 10:25 PM

TOKYO (Reuters) - Japan Display Inc is considering deeper restructuring than first planned and has asked a state-backed fund for help after losing business with Apple Inc due to its late entry into OLED technology, the Nikkei business daily reported.

Shares in the company climbed 12 percent in morning trade.

In addition to the Innovation Network Corp of Japan (INCJ), a government-led technology venture which extended the panel maker a lifeline last year, it has also approached other investment funds and is looking at capital and business tie-ups, the newspaper said.

It added that Japan Display will appoint a new management team at its annual shareholders meeting later this month, and announce a new medium-term business plan by August.

A Japan Display spokesman said that the report was not based on any announcement by the company.

Japan Display has posted three straight years of losses, hurt by fluctuating demand for Apple's iPhones.

The company was created in 2012 by INCJ, combining the display units of Hitachi Ltd, Sony Corp and Toshiba Corp as a way of rescuing the country's teetering tech industry.

INCJ agreed in December agreed to provide up to 75 billion yen ($685 million) to help the company.

(Reporting by Naomi Tajitsu; Editing by Edwina Gibbs)