Electronic equipments and components provider Sharp Corporation (SHCAY.PK) Wednesday said it has decided to form a capital alliance with Samsung Electronics Japan Co., a Japanese corporation of Samsung, by issuing new shares to it through a third-party allotment. The fund is raised to strengthen Sharp's liquid crystal display (LCD) business.
Pursuant to the agreement, Sharp is expected to receive capital investment of approximately 10.4 billion yen from Samsung Electronics Japan and issue new shares equivalent to 3.08 percent of the voting rights.
Sharp said the purpose of this agreement is to build up mutual trust relationship towards increase in the corporate value of Sharp and Samsung Electronics in the field of liquid crystal display business and to increase Sharp's capital adequacy.
For comments and feedback: editorial@rttnews.com