Sharp to Raise Up to USD 1.5 bn Via New Share Offering
OREANDA-NEWS. Sharp Corp. raised its outlook for its fiscal first half and unveiled details of an equity financing plan to raise up to USD 1.5 billion in order to strengthen its capital base.
The struggling electronics maker said it now expects an operating profit of JPN 30 billion for the first half, considerably better than its previous prediction for a JPN 15 billion profit. The latest outlook also represents a dramatic turnaround from the JPN 168.90 billion operating loss it posted in the same period a year earlier.
Sharp and other Japanese electronics giants are struggling to revive themselves after being weighed down by hefty investments in things like flat-panel televisions and semiconductors to keep pace with spending by Samsung Electronics Co. and other Asian rivals.
Under the equity financing plan, Sharp is planning raise up to JPN 148.96 billion in net proceeds through a new share offering to the public, as well as to three companies -- electric tools maker Makita Corp., building materials manufacturer Lixil Group Corp. and automotive parts maker Denso Corp. A fixed offering price will be determined between Oct. 7 and Oct. 9.
As a result, the number of Sharp's outstanding shares is expected to increase by 42% to up to 1.689 billion from the current 1.188 billion.
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