Yesterday we told you that Foxconn suspended the sale of its own shares on stock exchanges around the world because it was going to announce the acquisition of the Japanese company Sharp, and this happened during this day, the sum of 3.5 billion dollars to be paid by the Taiwanese.
Although those from Foxconn they initially made an offer of 6.2 billion dollars to buy Sharp, after analyzing the accounting books and discovering the fact that in reality the company has much larger debts than initially thought, the amount was greatly reduced to cover them.
By spending $3.5 billion to buy Sharp, Foxconn now has the opportunity to move from a simple company that assembles products for others to a company that supplies components used in a variety of electronic devices.
Although the main object of Sharp's activity is the production of screens for electronic products, the Japanese company produces televisions, household appliances and many others, even if their share of revenues is lower than that of the production of screens.
The boards of Sharp Corp. and Foxconn Technology Group approved a plan Wednesday for the Taiwanese electronics assembler to buy the struggling Japanese consumer electronics giant for 389 billion yen (US$3.5 billion), a nearly $2.5 billion haircut from its original offer price.
For Foxconn, this move means a lot because it gives it the opportunity to generate more income through contacts with Apple, but also to conduct closer negotiations considering that Sharp supplies a consistent part of the screens used in iDevices.
