TAIPEI/OSAKA -- Sharp and Hon Hai Precision Industry (widely known as Foxconn) held board meetings on Wednesday and both announced that they have finalized a deal that will see the Taiwanese electronics contract manufacturer purchase the struggling Japanese electronics company for about 389 billion yen ($3.47 billion) in newly-issued equity shares.
The two companies also announced that they will hold a signing ceremony and a joint press conference in Osaka on Saturday.
The Taiwanese firm's initial offer was 489 billion yen, but the amount was cut by roughly 100 billion yen after the suitor was informed of the existence of massive contingent liabilities on the Sharp side.
Sharp also announced Thursday that it would book a consolidated operating loss of 170 billion yen for the business year ending March 31. The company had earlier projected an operating profit of 10 billion yen for the year. It cited poor performance of its LCD panel and home electronic appliance businesses, which resulted in deterioration in operating margins and inventory impairments.