Sharp Corporation (“Sharp”) and Sony Corporation (“Sony”) today entered into an agreement (the “Joint Venture Agreement”) to establish a joint venture company to produce and sell large-sized LCD panels and modules.
On July 1, 2009, Sharp split out its new LCD panel plant located in Sakai City, which is under construction, and transferred it to Sharp Display Products Corporation (“SDP”), its wholly-owned subsidiary. SDP is scheduled to commence operations in October 2009. On December 29, 2009, as the first step toward the final investment ratio (66% by Sharp and 34% by Sony), Sony will invest 10 billion yen into SDP in exchange for new shares to be issued by SDP to Sony as third-party allocation. As a result of this transaction, SDP will become a joint venture company of Sharp and Sony on the same day. The Joint Venture Agreement further provides that Sony will make a number of additional capital injections to SDP subject to conditions set forth in the Joint Venture Agreement.
SDP will seek to maximize the advantages gained from using the world’s first 10th generation glass substrates to produce large-sized LCD panels and modules that deliver the industry’s highest levels of quality, cost and performance.
Sharp and Sony will further discuss joint development of components for LCD modules to strengthen their mutual collaborative relationship.
<Joint Venture Company Overview>
||Sharp Display Products Corporation
||1 Takumi-cho, Sakai-ku, Sakai City, Osaka Prefecture
||Hiroshi Saji, President
||Production and sales of LCD panels and modules
||Date of Establishment:
||April 1, 2009 (as a wholly-owned subsidiary of Sharp)
|December 29, 2009
||15 billion yen as of December 29, 2009 (10 billion yen as of July 30, 2009)
||127 billion yen as of December 29, 2009 (122 billion yen as of July 30, 2009)
||Share Holding Ratio:
||The Joint Venture Agreement provides that, subject to conditions set forth in the Joint Venture Agreement, Sony will make a number of additional capital injections to SDP, resulting in a maximum 34% ownership by Sony of SDP by the end of April 2011.
||72,000 substrates per month (initially 36,000 substrates per month)
||Estimated Total Investment by the Joint Venture Company:
||Approximately 430 billion yen (including leased assets)
<Prospective on Sharp, a parent of SDP>
The execution of the Joint Venture Agreement will have no significant impact on the consolidated performance of Sharp for its fiscal year ending March 31, 2010.
For the forecast of consolidated performance of Sharp for its fiscal year ending March 31, 2010, please refer to Sharp's announcement made today regarding consolidated financial results for the first quarter ended June 30, 2009.
|The above information is true and accurate at the time of publication. Manufacture, sale, price and specifications of products may be subject to change.