Hon Hai Hopes to Participate in Sharp's Management
Sep 04, 2012
Terry Guo, chairman of Hon Hai Group, expressed yesterday (Sept. 3) that Hon Hai intends to get involved in the management of Sharp, in the hope of helping Sharp cut production cost and turn profitable.
Guo noted that Hon Hai can utilize its advantages to help Sharp turn around, adding that his intention is not to win power in Sharp. If Hon Hai
doesn't get involved in the management of Sharp, Sharp might as well just resort to banking consortium, according to Guo. Hon Hai will not make pure capital investment and plans to participate in the management of Sharp, in order to create a win-win outcome for both parties.
Hon Hai stressed that investment by Hon Hai in Sharp is based on the angle of Taiwan-Japan cooperation, rather than just money. Therefore, Hon Hai hopes to engage in the management of Sharp, studying together how to salvage Sharp. Hon Hai worries that money invested in Sharp might not be properly utilized in improving the profits of Sharp.
Hon Hai cited the example of Sharp's 10th-generation TFT-LCD plant in Sakai, Osaka, whose capacity utilization rate has been doubled, since Hon Hai took part in its operation in July.
Guo noted that it is impossible for Hon Hai to invest in Sharp without engaging in its management, since the participation of Hon Hai can help Sharp become profitable. He referred to the example of Apple, which dispatched its staffers to station in Sharp's factories, to assure supply. He also suggested that Sharp should hand over its management to younger generation.
Guo denied existence of discord between Hon Hai and Sharp, saying strategic partnership of Hon Hai can help Sharp improve management, solve red ink of core business, and repay banking loans.
Some 200 billion yen of Sharp's convertible corporate bonds will mature this month. Guo said that engagement of Hon Hai in Sharp's management and injection of fresh capital can not only help Sharp turn around but also repay loans owed to Japanese banks.
source & copyright: CENS