Sharp Corp. (6753) reportedly plans to sell its information equipment business (copiers etc., JPY 277.5 billion / USD 3.5 billion in sales), electronic devices business (LED lighting etc., JPY181.2 billion / USD 2.3 billion in sales) and air conditioning equipment business (JPY 53.5 billion /USD 0.7 billion in sales).
Sharp may also invited a JV partner to operate its main plant in Kameyama, which makes LCD panels for Apple. It may also have other firms operate its TV assembly plant in Mexico and solar cell production facilities. It will sell its 0.6% stake in Olympus (7733) and possibly its 9.8% interest in lithium ion battery joint venture Eliiy Power Co.
Kyocera (6971), Daiwa House (1925) and Daikin Industries (6367) are among the firms to have reportedly expressed interest in buying them. According to our source, a few private equity firms have been in contact with Sharp.
Bracing for a huge net loss this fiscal year, Sharp seeks to get back on its feet by focusing on such fields as LCDs, mobile phones and white goods. With about JPY 200 billion (USD 2.5 billion) in convertible bonds set to mature in autumn of next year, Sharp is in need of cash.
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