Samsung set to get its claws into struggling TV maker Sharp.
The Koreans are set to give the Japanese company a much needed capital injection by buying a 3% stake worth around 10 billion yen ($104 million), according to reports from Nikkei newspaper, reports AFP.
Electronics giant Sharp is currently seeking life saving capital injections to stay afloat after a succession of horrendous financial losses.
Hon Hai – Apple’s biggest supplier – has already bought a 10% stake in the company.
Last month Sharp announced a net loss of A$4.39bn for the 9 months to December 31 – double the figure a year prior, as LCD demand falls “drastically,” it said.
Sharp President Takashi Okuda admitted last month: “We are still in a tough spot financially”
According to the report, Samsung could now have Sharp production facilities on tap and make itself a priority client.
The move by Samsung could have negative consequences for Apple, who having fallen out with Samsung now depend on Sharp heavily, as one of its biggest suppliers of iPad screens.
An official announcement on the deal is expected later today.
“We’re going to accelerate our structural reforms without easing up,” Okuda promised investors last month.
“I’d say we’re still not even at the base.”