Japan Display Negotiating Factory Sale With Apple And Sharp

Japan Display Inc (OTC: JNNDF) is negotiating a sale price for its main Hakusan factory with Apple Inc. (NASDAQ: AAPL) and Sharp Corporation (OTC:

Benzinga · 12/27/2019 09:43

Japan Display Inc (OTC: JNNDF) is negotiating a sale price for its main Hakusan factory with Apple Inc. (NASDAQ: AAPL) and Sharp Corporation (OTC: SHCAY), according to Nikkei Asian Review.

What Happened

Japan Display (JDI), a display technology joint venture, is in discussion with Apple and Sharp to sell its Hakusan factory in Ishikawa Prefecture, sources told the Nikkei.

JDI could sell the factory to Apple for a price of between 80 billion and 90 billion yen ($730 million and $820 million), reports the Nikkei.

Sharp has already conformed it received a proposal to buy Japan Display’s Hakusan plant from one of its clients.

“We are carefully considering it, reviewing the impact that any purchase would have on our earnings, and whether and how much risk it would entail,” the company said in a statement.

Why It Matters

Japan Display, which mainly manufactures display panels for smartphones, temporarily stopped production at its Hakusan factory in July and extended the production halt beyond September due to poor sales.

The company earlier said it could get financial support of $200 million from one of its clients (which sources said was Apple) to buy equipment for its Hakusan plant.

It now looks like those talks have turned to the sale of the whole factory, sources told The Nikkei.