Bloomberg News

Hon Hai to Close Sharp Investment in July at $214 Million Loss

June 22, 2012

Hon Hai (2317) Group said it expects to complete the purchase of a 9.9 percent stake in Sharp Co. next month and will take an estimated NT$6.4 billion ($214 million) mark-to-market loss on the investment.

“We estimate the settlement of the shares will be in July,” Simon Hsing, a spokesman for the group, said by phone today. Hon Hai Precision Industry Co., the flagship of the Hon Hai Group, and its affiliates said on March 27 they would buy 121.65 million new shares in Sharp at 550 yen each. Shares of Sharp, Japan’s biggest maker of liquid-crystal displays, have slumped 37 percent this year to 425 yen in Tokyo.

Hon Hai Precision Industry will book a NT$2.63 billion loss on the investment and its Foxconn (Far East) Ltd. unit will book a NT$1.64 billion loss, according to statements on the Taiwan Stock Exchange today. Foxconn Technology Co. (2354) will book a NT$422.6 million loss and its Q-Run Holdings unit will book a NT$1.71 billion loss

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net.


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