Apple grants $100 million lifeline to ailing Japan Display
Japan Display has struggled with faltering demand and a shift in technology, losing money for five straight fiscal years.Updated: Jun 28, 2019 15:36 IST
Apple Inc. is providing a $100 million lifeline to Japan Display Inc., a person familiar with the matter said, shoring up a key smartphone display supplier that’s trying to salvage a bailout package after multiple investor departures.
The US company is stepping in after Taiwan’s TPK Holding Co. withdrew from a $1.1 billion rescue plan for the Japanese firm, the person said, asking not to be identified discussing a private deal. Cosgrove Global Ltd. and Topnotch Corporate Ltd. pulled out shortly after, leaving the bailout in limbo.
Harvest Tech Investment Management Co. and Oasis Management Co. remain in discussions, the Japanese company said in a statement on Thursday. It’s received commitment letters from Chinese fund Harvest for investments of $300 million -- including Apple’s outlay -- and a conditional agreement from Oasis to stump up as much as $180 million. Japan Display said it’s continuing talks and seeks to close a bailout deal by Dec. 30.
It’s been a roller-coaster month for Japan Display’s shareholders. The stock fell to near a record low on June 17 after TPK’s withdrawal, then soared 18% on Thursday after a report emerged that Apple was considering financial support. It ended Friday unchanged.
Japan Display has struggled with faltering demand and a shift in technology, losing money for five straight fiscal years. The smartphone market has been shrinking and Apple, its biggest customer, is moving to next-generation organic light-emitting diode displays, which the Japanese company doesn’t produce in mass quantities.
First Published: Jun 28, 2019 15:36 IST