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Hon Hai sticks with investment in Sharp

2012/08/05 21:13:04

Taipei, Aug. 5 (CNA) The chairman of Taiwan's Hon Hai Precision Industry Co. said Sunday that the company's investment in Japan's Sharp Corp. will remain unaffected, despite the Japanese electronics firm's slumping share price.

"I still want to invest," Hon Hai CEO Terry Gou told reporters after a local TV interview.

"This is not a price issue. This is a value-added issue," Gou said. "The price is not all we're looking for. We're looking for long-term partnership."

"The Japanese firm is facing difficulties and I think we should offer help during its hard time," he added.

Gou made the remarks after Sharp advised a renegotiation on the price of the stake that Hon Hai has agreed to acquire in the Japanese firm.

He said Sharp's former and incumbent chairmen told him at a meeting in Japan Friday that Hon Hai can renegotiate the buying price because Sharp reported disappointing results in the second quarter, delivering a blow to its share prices.

The renegotiation might take place by March next year, but the actual timetable has yet to be decided, according to Gou.

Sharp shares plunged 28 percent to 192 Japanese yen (US$2.44) in Tokyo trading Aug. 3 amid reports that it is slashing 5,000 jobs over the next year, or nearly 9 percent of its global workforce.

Hon Hai share prices also plummeted that day on the Taiwan Stock Exchange, shedding 3.77 percent to close at NT$81.6 (US$2.73).

(By Jeffrey Wu)