Samsung to become Sharp's largest foreign shareholder with 3% stake worth $112M

Posted:
in General Discussion edited January 2014
Japanese electronics maker Sharp announced on Wednesday that Samsung will invest some $112 million for a 3 percent stake in the company, with the deal providing for the long-term supply of LCD panels.

Sharp


In accordance with the deal, as noted by The Next Web, Samsung will purchase 35.8 million shares of Sharp stock at a price of 290 yen per share on March 28, giving the Korean tech giant a 3.08 percent voting rights equivalent in the struggling Japanese firm. Sharp announced the alliance in a prepared statement published on its corporate website.

With the 10.4 billion yen (roughly $112 million) purchase, Samsung will become the fifth largest major Sharp shareholder and the largest foreign entity to hold a stake in the display maker. Previously, U.S. firm Qualcomm was the biggest foreign shareholder after a recent investment gave the chipmaker a 2.64 percent share of the company.

While Sharp already supplies Samsung with a limited number of displays, the capital alliance will "provide a long-term, stable and timely supply of LCD panels for large-size TVs and small- and medium-size LCD panels for mobiel decies such as notebook computers," the release said.

Apple also taps Sharp for LCD panels, meaning Samsung's move could be significant given the ongoing feud between the two tech titans. A recent The New York Times report posits that Samsung's injection of capital could help Sharp reduce its dependance on Apple, which uses the Japanese company's panels in iPhones and iPads.

Sharp plans to put the proceeds toward the development of high-definition LCD technologies and investment in facilities dedicated to the manufacture of mobile LCD panels.
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Comments

  • Reply 1 of 32
    bro2mabro2ma Posts: 35member
    So is samsung coping Apples investments also?
  • Reply 2 of 32
    Whatever happened to OLEDs are the future? /s
  • Reply 3 of 32
    emrulemrul Posts: 26member
    Samsung is certainly hitting Apple where it hurts: squeezing elements of the supply chain. For Tim Cook, master of logistics, this must be some interesting challenge.
  • Reply 4 of 32
    rayzrayz Posts: 814member
    Build all your own stuff. It's the only way to be sure.
  • Reply 5 of 32
    ksecksec Posts: 1,569member
    If this piece of news of true, that means the end of Foxconn working with Sharp.

    Apart from Samsung and Sharp, Apple is only left with Sony which produce quality display panels. LG just isn't up there yet.

    Samsung with Sharp, LG is Korean which cant be trusted. ( Although they are enemy of Samsung ), Sony is competing on every front as well. AU Optronics is doing ok for current technology. But they dont have any future hot tech down the line.

    Innolux, Formally Chi Mei, does well in Mid and Low Range, High Price quality ratio panel. But again, Not top quality panel ( yet ) and has relatively little future proof tech.
  • Reply 6 of 32
    gtrgtr Posts: 3,231member


    Japanese electronics maker Sharp announced on Wednesday that Samsung will bribe them some $112 million for a 3 percent stake in the company, with the deal providing for the long-term information on Apple's intentions with them...


     


    Fixed that for AI.

  • Reply 7 of 32
    aizmovaizmov Posts: 989member
    Apple would just have to make a larger investment in Sharp
  • Reply 8 of 32
    jay-tjay-t Posts: 39member


    If you guys think, that with a 3% stake in a company you can run it as you wish, then you are misguided!! It won't affect the Apple-Sharp relationship in any way.

  • Reply 9 of 32
    gtrgtr Posts: 3,231member
    You are correct.

    Being the fifth largest shareholder in a company gives you no leeway whatsoever, especially if you are a company with such an established history of "not being corrupt"...
  • Reply 10 of 32


    Well, I hope this is not going to affect Apple's shipments or production. Guess it's time for Apple to fast-track its promise of bringing the production to US. Is Samsung really interested in Sharp or is it just doing this because Apple's gonna stop having Samsung produce Apple's gadget parts?

  • Reply 11 of 32
    phone-ui-guyphone-ui-guy Posts: 1,019member


    I don't understand why Apple wouldn't have upped the investment to keep Samsung out.

  • Reply 12 of 32
    plagenplagen Posts: 151member
    Yep, just use the $400M that Samsung owes to them and become a 10% holder :)
  • Reply 13 of 32
    This reminds me of Dallas, except its the Koreans who have taken on J.R. Ewings ruthless business strategy
  • Reply 14 of 32
    isaidsoisaidso Posts: 750member
    Meanwhile... Apple (in classic scene from "The Holy Grail")

    RUN-AWAY! RUN-AWAY! RUN-AWAY! RUN-AWAY!
  • Reply 15 of 32
    isaidsoisaidso Posts: 750member

    Quote:

    Originally Posted by jay-t View Post


    If you guys think, that with a 3% stake in a company you can run it as you wish, then you are misguided!! It won't affect the Apple-Sharp relationship in any way.



    Yeah? How about the Apple-public PR relationship? Any affect there?

  • Reply 16 of 32
    aizmovaizmov Posts: 989member
    jay-t wrote: »
    If you guys think, that with a 3% stake in a company you can run it as you wish, then you are misguided!! It won't affect the Apple-Sharp relationship in any way.

    Of course not. I think in Japanese law you need to have about 33% to have a say in the company's decisions.
  • Reply 17 of 32
    MacProMacPro Posts: 19,718member
    WS will no doubt see this as yet another reason to lower ratings for AAPL.
  • Reply 18 of 32
    jragostajragosta Posts: 10,473member
    aizmov wrote: »
    Of course not. I think in Japanese law you need to have about 33% to have a say in the company's decisions.

    I'd be interested in your reference for that. So if I own 32.9% of a company, they would tell me to pound sand and if I own 33%, they have to listen? I don't think it works that way.

    In fact, Japanese corporate law is a strange amalgam of different principles. One of the guiding principles is that they have to consider all stakeholders (suppliers, customers, employees, etc) in making decisions. That doesn't mean that those stakeholders control, but that they must be considered.

    Japan is also well known for its keiretsu. Companies are all tightly linked and interconnected. The relationships and connections carry a huge amount of weight - regardless of the percentage of ownership.
  • Reply 19 of 32
    r1skor1sko Posts: 30member
    Wasn't there a report in 2012 claiming that Apple invested in Sharp facilities close to 2 billion? Was it ever confirmed? This could be interesting investment relationship....
  • Reply 20 of 32
    jollypauljollypaul Posts: 328member

    Quote:

    Originally Posted by jay-t View Post


    If you guys think, that with a 3% stake in a company you can run it as you wish, then you are misguided!! It won't affect the Apple-Sharp relationship in any way.



     


    That investment and the announced "alliance" buys them access to internal Sharp information: what's in development (work for a customer that may be a Samsung competitor?), product sales, inventory levels (build up for a new Apple product release?), supplier details (upstream companies to interfere with?), etc. That's a great way to keep tabs on a supplier to a competitor.

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