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Sharp shareholders greenlight Hon Hai takeover bid

Xinhua, June 23, 2016 Adjust font size:

Shareholders of Japan's electronics giant Sharp Corp. approved at a meeting Thursday a motion for the company to be taken over by Taiwan's Hon Hai Precision Industry Co., making Sharp the first major Japanese electronics manufacturer under foreign ownership.

The shareholders also approved at the meeting the company's new management and the decision to relocate the company's headquarters from Osaka to Sakai city, also in Osaka Prefecture.

Hon Hai, also known as Foxconn, is a major contractor to Apple Inc.. It is set to acquire a 66 percent stake in Sharp for 388.8 billion yen (3.7 billion U.S. dollars) this month.

Sharp President Kozo Takahashi apologized at the shareholders' meeting for the company's poor performance and said he hoped that the company could be revitalized through strategic alliance with Hong Hai.

After the takeover is completed, six of the nine executive board members of Sharp will be picked by Hon Hai, with Takahashi replaced by Dai Zhengwu, vice chairman of Hon Hai.

Though Dai was reported as saying earlier that 7,000 Sharp employees might be laid off worldwide after the takeover, Sharp said at the shareholders' meeting that nothing has been decided yet.

Osaka-based Sharp is one of the major electronics makers in Japan. In recent years, Sharp's finances deteriorated in face of intense international competition and posted a loss of over 200 billion yen for fiscal 2014. Endit