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Sharp to raise up to ¥200B with new share issue

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Sharp to raise up to ¥200B with new share issue

Japanese consumer electronics company Sharp Corp. on June 5 decided it will raise up to ¥200 billion by issuing new common shares.

Sharp said it filed a shelf registration statement for the share issuance, which becomes effective June 13. However, it is still considering details such as the timing, total amount and method, with options including a public offering. The shelf registration remains effective until June 12, 2019.

The company intends to use the proceeds to purchase 100,000 preferential shares each from its main lenders, Mizuho Bank and MUFG Bank, for a total of ¥185.02 billion. The remainder would go toward capital investment as well as research and development.

The move is part of a capital restructuring plan marking Sharp's shift from reform to growth following its 2016 acquisition by Taiwanese contract electronics manufacturer Hon Hai Precision Industry Co. Ltd., also known as Foxconn Technology Group.

Sharp also said it was looking at possible collaborations with Hon Hai such as establishing joint ventures for products like automobile and sensor modules.

This decision comes the same day that Sharp agreed to purchase 80.1% of Toshiba Corp.'s personal computer business for ¥4 billion.

In Tokyo, Sharp shares closed down ¥120, or 4.06%, at ¥2,833 after sliding to ¥2,684 shortly following the announcement of the share issuance plan.

As of June 4, US$1 was equivalent to ¥109.67.