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Sharp posts huge loss ahead of takeover

Do Not UseDo Not Use 12/05/2016
Sharp logo © Getty Images Sharp logo

Japanese electronics giant Sharp posted a huge loss in its last annual earnings before being taken over by Foxconn later in the year.

The struggling company announced an operating loss of 162bn yen ($1.5bn) for the fiscal year ending March 2016.

Sharp in March accepted a takeover bid by Taiwan's Foxconn which will take control in October.

Foxconn, formally known as Hon Hai, appointed its vice chairman of Foxconn, Tai Jeng-wu, to the Sharp board.

He is said to have played a key role in the takeover negotiations.

Founded in 1912, Sharp is one of Japan's oldest technology firms and officials had been reluctant to let it fall under foreign ownership because of the distinctive technology behind its display panels.

The deal with Foxconn marks the first foreign takeover of a major Japanese electronics firm.

Despite a downturn in its fortunes in recent years, the firm continues to be a leader in liquid display technology, a key asset for Foxconn.

But waning global demand for its display technology and internal restructuring failures have led to the company getting into deep financial trouble.

In 2012, Sharp came close to entering bankruptcy. It has struggled with heavy debts and has been through two major bailouts in the last four years.

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