Sharp to seek Japanese backing for LCD spin-off business

Electronics firm Sharp plans to ask Japan's public-private investment fund to back a spin-off of some of its liquid crystal display business.

The Osaka-based maker of Aquos TVs will seek investment from Innovation Network Corp of Japan (INCJ) in a separate subsidiary that will take over its business in smaller LCD panels used in smartphones and tablet computers, a source said.

Sharp, headed for a third loss in four years, has said it’s considering “drastic reform” as it prepares a management plan for release in May.

Talks on investment by Foxconn Technology Group have foundered, and bets against the company's shares rose to the highest level since 2013 last month as the debt-strapped supplier to Apple considers whether to continue rescue talks with Taipei-based Foxconn.

Sharp will ask INCJ to invest 100 billion yen (€765 million) in an LCD spin-off, the Nikkei newspaper reported on Sunday.

The Yomiuri newspaper on Saturday reported Sharp’s plan to shift LCD operations into a separate company.

Sharp is considering various options for its LCD business and hasn't yet made any decisions, said Yoshifumi Seki, a Tokyo- based spokesman for the company. A call to INCJ seeking comment out of business hours was not answered.

Bloomberg