The rescue plan for Japan Display – an LCD screen provider for Apple that needed a significant investment to strengthen its position on OLED – is expected to amount to 232 billion yen ($ 2.1 billion).
However, it is unlikely that the bailout will be blocked by a review of US national security …
Reuters reports that the bailout is much larger than expected.
A Chinese-Taiwanese group will take control of the Japanese supplier Apple Display Japan Display after injecting funds in a 232 billion yen ($ 2.1 billion) bailout package for the panel maker display in difficulty.
The bailout comes after earlier, publicly funded bailouts did not help the company end its reliance on [LCD] IPhone sales have seriously affected Japan Display.
The agreement will enable Japan Display's largest shareholders, with a 49.8 percent stake, to replace the Japanese-backed INCJ fund and effectively end the government's efforts to keep the latest display manufacturer inside out of foreign reach.
Previous speculations had been around significantly lower numbers. We have seen $ 500 million to $ 700 million, $ 723 million, and more recently, just under $ 1 billion.
The Taiwan-based exhibition group TPK Holding and the Chinese investment company Harvest Group also took part in the deal, with the Japanese government's INCJ – which provided a previous bailout – agreeing to swap its debt for preferred shares of the company.
Interesting, Reuters suggests that the Japan Display Rescue Agreement could potentially be blocked by a review of US national security.
Japan Display has a subsidiary in San Jose, a US company that could award the US Foreign Investment Commission (CFIUS) jurisdiction over this transaction.
Screens may not necessarily be critical export-controlled technologies, but some of Japan Display's technologies, such as fingerprint sensors, could pose a national security challenge, said Nancy Fischer and Matthew Rabinowitz, respectively partner and senior partner of the American firm Pillsbury. .
Minoru Kikuoka, head of Japan Display's financial division, told reporters at a briefing that company counsel had said a CFIUS file would not be needed. CFIUS, however, retains its undetermined jurisdiction to apply for a deposit and revise the transaction, even after closing.
This does not seem like a likely prospect, but it's a new twist in the complicated story of attempts by a struggling Apple supplier to regain its former status.
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