Foxconn reduces Sharp buyout bid to $3.5 billion

Last month Foxconn put its deal to buy Sharp on hold as the electronics manufacturing giant needed more time to study the financials of its takeover target after Sharp disclosed a long list of contingent liabilities just before the deal was supposed to be signed. After doing its due dilligence, Foxconn now announces its paying 389 billion yen (about $3.5 billion) to acquire a controlling stake in Sharp, a drop of 100 billion yen versus its previous offer.

The parent of Hon Hai Precision Industry Co. is paying 389 billion yen ($3.5 billion) for a controlling stake in Sharp, a drop of 100 billion yen from an agreement forged a month ago. As a result, Foxconn and its affiliates will get 66 percent of the Japanese company for 88 yen per share, both companies said in statements on Wednesday.

“Finally, it’s decided,” said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. “This is positive for Sharp, although it’s hard to imagine that Foxconn won’t have to keep providing funds.”

Full details at Bloomberg.