What you need to know
- Ailing Apple supplier Japan Display Inc. has denied reports of another financial bailout.
- It was previously reported that it had secured 100.8 billion yen ($925M) from Ichigo Asset Management.
- Trading of its shares was suspended in wake of reports of a fresh stake from IAM.
Apple supplier Japan Display has denied having signed a deal worth 100.8 billion yen ($925M), after its shares were suspended over reports.
Yesterday, January 30, it was reported by Reuters that the company's shares were suspended after it was reported that Ichigo Asset Management would inject over 100 billion yen into the company.
Today, a fresh Reuters report seemed to confirm that the deal had been finalized. This morning it reported:
Japan Display Inc (6740.T) said on Friday it had sealed a deal to receive up to 100.8 billion yen ($918.87 million) from Ichigo Asset Management, a critical bailout for the Apple supplier that has been dependant on publicly funded rescues.
The deal will give the independent Japanese investment manager effective control of the liquid crystal display (LCD) maker, replacing the Japanese government-backed INCJ fund as the top shareholder.
However, a later report from telecompaper claims that Japan Display actually denies this. According to their report:
Japan Display has denied having signed a JPY 100 billion funding deal with Ichigo. The statement follows recent press reports claiming that Japan Display is finalizing a JPY 100 billion funding deal with Ichigo Asset Management and that Ichigo Asset Management will undertake JDI's preferred shares of JPY 50 billion. Japan Display reports that contents in the press report is not based on any information released by the company. However, Japan Display also says that, as announced on 8 January, the company has been in talks with Ichigo Trust on funding and working to finalize the contract in January and complete funding in February or March of 2020. Details and conditions of the funding are still being discussed and the information will be announced once finalized, Japan Display added.
Both reports seem to confirm that a deal is in the works. Back in December it was reported that the two were in talks. However, there are now conflicting reports with regards to this latest deal, the most recent report suggesting that Japan Display denies having finalized the deal.
Apple remains committed to financially backing the drowning company, despite the company having reported 11 consecutive quarterly losses and the fact that it owes Apple some $800 million, money that was used to construct a plant in Japan.