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Foxconn seeking additional support from Sharp's main banks - Sankei
March 9, 2016 / 1:26 AM / 2 years ago

Foxconn seeking additional support from Sharp's main banks - Sankei

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in Tucheng, New Taipei city, December 24, 2013. REUTERS/Pichi Chuang

TOKYO (Reuters) - Taiwan’s Foxconn is seeking additional financial support from Sharp Corp’s (6753.T) main lenders as it finalises a deal to take over the troubled Japanese display maker, Japan’s Sankei newspaper reported on Wednesday.

Sharp’s main creditors, the core banking units of Mitsubishi UFJ Financial Group Inc (8306.T) and Mizuho Financial Group Inc (8411.T), have extended a combined 510 billion yen ($4.5 billion) in loans due for repayment at the end of the month, the paper said.

The banks plan to agree to refinance the loans, and Foxconn, known formally as Hon Hai Precision Industry Co (2317.TW), is seeking lower interest rates on those loans, the Sankei reported.

Discussions over Foxconn’s takeover of Sharp are set to conclude this week, sources have told Reuters.

The deal has been estimated to be worth around $5.8 billion.

Reporting by Chang-Ran Kim; Editing by Edwina Gibbs

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