A Chinese-Taiwanese group will take control of Apple Inc supplier Japan Display after pumping in funds as part of a 232 billion yen (USD 2.INCJ will also join the bailout by accepting a debt-to-preferred equity swap totalling 75 billion yen and extending senior loans worth 77 billion yen.The rescue comes after previous, publicly funded bailouts failed to help the company cut its dependence on Apple, whose slowing iPhone sales have badly hit Japan Display.Japan Display expects to post its fifth straight year of net losses in the year ending this month.The deal could potentially be subject to a US national security review at a time when Washington is stepping up its scrutiny on Chinese investment in the United States. It is now worth 67 billion yen.The buyer group, which includes Taiwanese flat screen maker TPK Holding and Chinese investment firm Harvest Group, will inject up to 80 billion yen Wholesale floor insulation into Japan Display by buying shares and bonds.
The deal will make the buyers Japan Display’s biggest shareholders - with a 49.The bailout comes as sales of new iPhone models - many of which use newer organic light-emitting displays (OLED) - have left Japan Display’s new factory that makes liquid crystal display (LCD) panels running at half capacity.Japan Display was formed in 2012 by combining the LCD businesses of Hitachi Ltd, Toshiba Corp and Sony Corp in a deal brokered by the government.Japan Display expects to post its fifth straight year of net losses in the year ending this month, as disappointing sales of Apple’s iPhone XR, the only model with an LCD screen, dashed hopes for a turnaround.Reuters reported earlier this month that Japan Display will begin supplying OLED screens for the Apple Watch later this year. CFIUS, however, retains indefinite jurisdiction to request a filing and review the transaction, even after it closes.1 billion) bailout plan for the troubled display panel maker. After the deal, its stake will fall to 12.