Hon Hai Precision, more commonly known as Foxconn, has finalised its delayed bid to acquire Sharp, and the information which caused the halt has led to a significant discount: the deal has dropped from $4.3 billion to $3.5 billion.
News that Foxconn, a company which builds electronics for everyone from Apple to Samsung as well as a small quantity of own-brand hardware, was looking to buy Sharp came out when the latter company announced the deal
in late February this year. No sooner had the company cheerily confirmed the acquisition, though, did Foxconn develop a serious case of cold feet due to the receipt of 'material new information
' on Sharp which meant Foxconn having to 'postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation.
Details of exactly what the new information was were never released, but it has had a major impact on the terms of the acquisition: while Foxconn is still going ahead with the deal, it is doing so for $3.5 billion - $800,000,000 less than the original agreement. For that, Foxconn will take a 66 per cent controlling share in Sharp.
'I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp,
' claimed Terry Gou, Foxconn's founder and chief executive, of the agreement. 'We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights.