Tokyo, May 24, 2012 - (JCN Newswire) - Sharp Corporation ("Sharp") and Sony Corporation ("Sony") today announced that their joint venture relationship to produce and sell large-sized LCD panels and modules will terminate, and that Sony will sell its shares (representing 7.04% of the issued shares) in Sharp Display Products Corporation ("SDP") to SDP*. In consideration for the sale of shares, Sony will receive cash consideration equal to its original investment of 10 billion yen 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.
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 yen into SDP in exchange for new shares issued by SDP to Sony (representing 7.04% of the issued shares of SDP) 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, in March 2012 Sharp and Sony agreed to amend the original joint venture agreement to provide that Sony would not make additional capital injections in SDP. Based on this amendment, the companies agreed to study studied the future direction of the joint venture and other potential business relationships between the parties, including with respect to Sony's interest in SDP. * In the event SDP is not able to purchase or pay for those shares due to applicable legal restrictions on acquiring its own shares or for any other reason, Sharp will purchase those shares from Sony.
Impact on the consolidated financial information of Sharp, as the parent company of SDP: No material impact is anticipated on Sharp's consolidated financial forecasts for the fiscal year ending March 31, 2013.
Impact on the consolidated financial information of Sony: No material impact is anticipated on Sony's consolidated financial forecasts for the fiscal year ending March 31, 2013.
Sharp Display Products Corporation Representative: Hiroshi Saji, President Location: 1 Takumi-cho, Sakai-ku, Sakai City, Osaka Prefecture Business: Production & sales of large-sized LCD panels & modules Establishment: April 1, 2009 (as a wholly-owned subsidiary of Sharp) JV Establishment: December 29, 2009 Share Holding Ratio: Sharp 92.96%, Sony 7.04% (as of end of April, 2012)
Sharp Corporation (TSE: 6753) is a worldwide developer of innovative products and core technologies that play a key role in shaping the future of electronics. As a leader in liquid crystal displays (LCDs) and digital technologies, Sharp offers one of the broadest and most advanced lines of consumer electronics, information products and electronic components, while also creating new network businesses. For more information, please visit www.sharp.co.jp .
Sony Corporation is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be the leading electronics and entertainment company in the world. Sony recorded consolidated annual sales of approximately $87 billion for the fiscal year ended March 31, 2011. Sony Global Web Site: http://www.sony.net/
Corporate Public Relations Division Sharp Corporation Phone: +81-6-6625-3006 (Osaka) Phone: +81-3-3260-1870 (Tokyo) Sony Corporation Corporate Communications T: +81-3-6748-2200 E: firstname.lastname@example.org
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