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Sony, Sharp finally cut LCD ties

Posted: 23 May 2012 ?? ?Print Version ?Bookmark and Share

Keywords:LCD panel? LCD module? Sony-Sharp joint venture?

Sony Corp. and Sharp Corp. have announced that they have terminated their joint venture to produce and sell large-sized LCD panels.

Sony will now sell its 7.04 percent share in Sharp Display Products Corp. (SDP) to SDP. In consideration for the sale of shares, Sony will receive cash consideration equal to its original investment of ?10 billion to be paid by SDP. Both the sale of shares and the payment of cash consideration will be completed by the end of June 2012. If SDP is not able to purchase or pay for the shares due to applicable legal restrictions on acquiring its own shares for any reason, Sharp will purchase those shares from Sony.

On July 1, 2009, Sharp transferred its LCD panel plant in Sakai City, Osaka Prefecture, to SDP, a wholly-owned subsidiary of Sharp. On December 29, 2009, Sony invested ?10 billion into SDP in exchange for new shares issued by SDP to Sony and, as a result, SDP became a joint venture company of Sharp and Sony as of the same date. In light of the rapidly changing market for LCD panels and LCD televisions.

Just this March, Sony and Sharp amended the terms of their joint venture agreement. Sharp and Sony discussed possible further contributions by Sony to SDP. However, they have agreed that Sony will not make additional capital injections to the joint venture. Read more of the article here.

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