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Yomiuri Shimbun Japan Display Inc. announced on Monday that TPK Holding Co. will leave a Taiwanese-Chinese consortium to provide financial support to the leading liquid crystal panel manufacturer.
JDI will continue its discussions mainly with the Chinese investment fund Harvest Tech Investment Management Co., one of the three consortium members. Nevertheless, the latest developments have fueled uncertainty about the restructuring of JDI.
The backbone of the support package was a commitment of 80 billion yen by the consortium to support JDI, while TPK, a leading Taiwan touch screen manufacturer, was providing 25 billion yen.
According to sources, TPK told JDI that it had postponed its offer of badistance because it had trouble properly explaining its decision to shareholders.
TPK is believed to be concerned about JDI's business conditions, which have rapidly deteriorated due to weak sales of smartphones LCD panels, a key product of the company.
The Taiwanese investment fund CGL Group, the third member of the consortium, has not told JDI whether it will provide financial badistance and is considered likely to go out of business.
Harvest Tech, which was expected to provide about 40 billion yen, told JDI that it would take a formal decision on financial aid by June 27.
JDI has announced its intention to raise up to 80 billion yen, as Harvest Tech is expected to increase its contribution and the Hong Kong investment fund Oasis Management Co. is expected to replace TPK within the consortium.
JDI will also maintain with other groups in Japan and abroad, including with companies with whom it has already discussed, because of the risk that the support framework will be not finalized by June 27th.Speech
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