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Japan Display Inc. is making final arrangements to acquire some 100 billion yen from a China-Taiwan consortium and Japanese public-private investment fund INCJ Ltd., informed sources said Saturday.
Japan Display, a leading manufacturer of small and medium sized liquid crystal displays currently undergoing rehabilitation, is in negotiations with the consortium, which includes a Chinese fund, and the Taiwanese touch screen manufacturer TPK Holding Co.
According to sources, Japan Display hopes to reach a basic agreement with the consortium as early as next week. Initially, the company was aiming to reach an agreement during fiscal year 2018, which will end Sunday.
The China-Taiwan consortium is expected to obtain about 30 percent of the voting power in Display Japan with a total investment of 60 billion yen, the sources said.
While the INCJ is considering additional financial support, Japan Display is expected to provide a total of about 100 billion yen, sources said. INCJ is the largest shareholder of Japan Display with a stake of more than 25% at the present time.
The funds raised will be used primarily to repay the debt and purchase parts for the production of the latest version of the iPhone from Apple Inc., a major customer of Japan Display.
If an agreement is reached, Japan Display plans to build a state-of-the-art organic electroluminescence panel plant in China with the help of the consortium.
Japan Display is expected to post a net loss for the fifth consecutive year during the 2018 fiscal year, reflecting the drop in sales of Apple products in China.
In 2012, Japan Display began operations by integrating the mid-size LCD business of Toshiba Corp., Hitachi Ltd. and Sony Corp., also benefiting from government badistance.
However, the company faces an extremely difficult situation due to a delay in the development of technologies related to electroluminescent organic panels.
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