TOKYO--Struggling Japanese electronics maker Sharp Corp.
(6753.TO) is considering raising around Y100 billion through a
public stock offering to help it repay Y200 billion in debt due in
September, sources close to the matter said Friday, Kyodo News
reported.
The company's main creditor banks, however, questioned the
feasibility of the plan, pushing Sharp to consider other ways of
raising capital such as reducing the amount of new share sales as
well as issuing preferential shares or subordinate bonds, the
sources said.
Rating agencies have cut Sharp's rating to levels considered
speculative, which has made it difficult for Sharp to raise money
through issuing new bonds.
The company has formed capital alliances with U.S.
telecommunication giant Qualcomm Inc. (QCOM) and Samsung
Electronics Co. (005930.SE) of South Korea, but receiving around
Y10 billion in investment from each would not be enough.
As Sharp is facing difficulty obtaining a nod about the plan
from the main creditor banks of Mizuho Corporate Bank and the Bank
of Tokyo-Mitsubishi UFJ, it may have to postpone to April
announcing its medium-term management plan, which is slated for
March, the sources added.
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