Apple supplier Japan Display agrees to $2.1 billion bailout

“A Chinese-Taiwanese group will take control of Apple Inc supplier Japan Display after pumping in funds as part of a 232 billion yen ($2.1 billion) bailout plan for the troubled display panel maker,” Makiko Yamazaki reports for Reuters.
“The rescue comes after previous, publicly funded bailouts failed to help the company cut its dependence on Apple, whose slowing iPhone sales have badly hit Japan Display,” Yamazaki reports. “The deal will make the buyers Japan Display’s biggest shareholders – with a 49.8 percent stake – replacing the Japanese government-backed INCJ fund and effectively ending the government’s efforts to keep the last remaining domestic display maker out of foreign hands.”
“The buyer group, which includes Taiwanese flat screen maker TPK Holding and Chinese investment firm Harvest Group, will inject up to 80 billion yen into Japan Display by buying shares and bonds”,” Yamazaki reports. “INCJ will also join the bailout by accepting a debt-to-preferred equity swap totaling 75 billion yen and extending senior loans worth 77 billion yen. After the deal its stake will fall to 12.7 percent from 25.3 percent.”
Read more in the full article here.
MacDailyNews Take: The saga continues… subject to U.S. national security review, of course.
SEE ALSO:
Apple supplier Japan Display wins $640 million from government-backed fund to boost OLED tech as Apple eyes new iPhone display – December 21, 2016
Apple’s next-gen flagship OLED iPhone is codenamed ‘Ferrari’ – December 20, 2016
Apple says OLED finally ready for iPhones, but most suppliers still aren’t – November 17, 2016
Apple supplier Japan Display seeks $703 million bailout from Japanese government – November 11, 2016
Sharp President confirms Apple iPhone transition to OLED displays – October 31, 2016
Apple supplier Sharp names Foxconn exec as CEO to spearhead revival – May 12, 2016
Apple supplier Sharp preps AMOLED displays after Foxconn acquisition – April 6, 2016
Did Apple help Foxconn buy Sharp? – March 31, 2016
Japan Display, an Apple iPhone supplier, seeks financial help from Japanese government – August 9, 2016
Japan Display CEO hints at strong Apple orders ahead of new iPhone launch – September 3, 2015
Japan Display and Apple to build new $1.4 billion plant for iPhone Retina displays – March 6, 2015
Japan Display’s reliance on iPhone orders rises – June 24, 2014