Sharp to Offer New Stock to Raise $1.1 Billion

By Thursday, April 4, 2013 0 Permalink 0

The Japan Times on Wednesday reported that Bank of Tokyo-Mitsubishi UF and Mizuho Corporate Bank, which are the two main creditor banks of the company, have waived green flag at Sharp’s stock plan as the company is also showing signs of recovery.

According to reports, Sharp will also be considering its share price movement to decide the right time for offering new stock to the public. On May 14, the company will be declaring its group earning results for the financial year ending 2013 and its mid-term business plans through 2015.

For paying off the remaining 100 Billion Yen, the company aims to save revenues generated through its liquid crystal display (LCD) panel sales, added unnamed sources.

Initially the two creditor banks were against Sharp’s stock plan as according to them the plan would undermine the current stock value held by the company’s shareholders. The banks had asked Sharp to reconsider its stock plan and switch to some other means of raising capital like sale of some of the company’s business units.

With banks approving the plan and Sharp expecting increase its LCD sales in the coming months following a deal with Samsung, chances of positive outlook can’t be ruled out. To keep itself in a safe position, Sharp also said that the company will be raising capital from various banks worth 30 billion Yen.