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The logo of Japan Display Inc is represented at its headquarters in Tokyo, Japan, on August 9, 2016. REUTERS / Kim Kyung-Hoon / Photo File WORLD WEEK OF BUSINESS WEEK – SEARCH & BUSINESS WEEK NOV 7 & # 39; FOR ALL IMAGES
TOKYO (Reuters) – Japan's Japan Display Inc. announced on Monday its intention to raise up to $ 990 million in new financing this week, which would drive up the struggling producer's shares.
Japan Display, one of the world's largest suppliers of LCDs used in iPhones, has been hit hard by Apple's changing fortunes. He was particularly affected by the slowing down of iPhone sales and the proliferation of newer models using newer Organic Light Emitting Display (OLED) displays.
Japan Display announced a capital increase of 110 billion yen ($ 990 million). Of this amount, 80 billion yen would come from the issuance of shares and bonds to outside investors, an agreement it is intended to reach this week, he said.
He did not name external investors, although two sources familiar with the case have already told Reuters they are looking for a group of investors led by China Silkroad Investment Capital.
The remainder of the funding comes from preferred shares to refinance existing debt held by its largest shareholder, INCJ Ltd., backed by the state, said in its statement, Japan Display.
Japan Display, formed in 2012 as a result of a government-backed merger of troubled display units from Sony Corp., Toshiba Corp. and Hitachi Ltd., announced its fifth consecutive year of net losses in February.
Shares of Japan Display rose 16% early Monday and 13% to 78 yen at 0211 GMT.
Junko Fujita report; Edited by David Dolan and Neil Fullick
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