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.
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.5 billion construction costs for a new LCD factory three years ago.Displays may not necessarily be critical technologies that are export controlled, but some of Japan Display’s technologies such as fingerprint sensors could raise a national security concern, said Nancy Fischer and Matthew Rabinowitz, partner and senior associate, respectively, at US-based law firm Pillsbury.Minoru Kikuoka, Japan Display’s finance division head, told reporters at a briefing that the company’s legal advisors have said a CFIUS filing would not be necessary.It went public in March 2014 and was worth more than 400 billion yen then.Kikuoka said at the briefing, without naming Apple, that Japan Display still owes its client about 100 billion yen.
We discussed with our client, including that (repayment) issue as well, before we reached the agreement,” Kikuoka said.8 per cent stake - replacing the Japanese government-backed INCJ fund and effectively ending the government’s efforts to keep the last remaining domestic display maker out of foreign hands.. The US tech giant fronted most of the USD 1.Japan Display has a subsidiary in San Jose, a US business that could give the Committee on Foreign Investment in the United States (CFIUS) jurisdiction over the deal.3 per cent.7 per cent from 25.The Apple business accounted for more than half of Japan Display’s revenue over the last four years.Under the latest deal, Japan Display and Harvest Tech, part of the buyout group, are planning to jointly produce OLED panels, used in top-end iPhones, Japan Display said
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