Apple supplier’s rescue leaves Japan red-faced

TPK Holding Co

15/04/2019 03:02

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, April 15 (Reuters Breakingviews) - An investor
group is buying two thirds of Japan Display for $714 mln, an
embarrassingly low price for a former national champion. The
company will fall into foreign hands, some of them Chinese,
which could raise red flags. Managers have little choice but to
pray the deal closes.
    Full view will be published shortly.
    On Twitter https://twitter.com/AlecMac11

    CONTEXT NEWS
    - Japan Display said on April 12 it has agreed to a 232
billion yen ($2.1 billion) rescue deal from a consortium of
Chinese and Taiwanese investors and state-backed Innovation
Network Corporation of Japan. 
    - A vehicle called Suwa Investment will invest up to 80
billion yen into the company through the acquisition of shares
and convertible bonds, Japan Display said in a statement.
    - INCJ, which already holds a stake in the company, will
provide Japan Display with a 77 billion yen five-year loan and
accept a debt-to-preferred equity swap totaling 75 billion yen.
    - Suwa will own 49.8 percent of Japan Display following the
deal, replacing INCJ as the company’s top shareholder. Suwa’s
stake will increase to 65.4 percent after its bonds are
converted to equity. 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Chinese group to get control of Japan Display after $2.1 bln
bailout     urn:newsml:reuters.com:*:nL3N21U25Q
BREAKINGVIEWS - Japan’s foreign invaders could use domestic
allies     urn:newsml:reuters.com:*:nL3N1ZZ1SL
BREAKINGVIEWS - Cracks at Apple appear in Asia’s supply chains  
  urn:newsml:reuters.com:*:nL3N1ZN26E
Japan Display statement    https://ssl4.eir-parts.net/doc/6740/tdnet/1692189/00.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Pete Sweeney and Katrina Hamlin)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))