Japan Display says bailout from Chinese group to be delayed (updated)

TPK Holding Co

13/05/2019 09:05

* China-Taiwan group was to pump in 80 bln Y as part of
rescue
plan
    * Japan Display said group wants to re-examine its business
performance
    *  

 (Adds Japan Display comments, background)
    TOKYO, May 13 (Reuters) - Japan Display Inc  6740.T  said on
Monday that a planned investment of up to 80 billion yen
($729.33 million) from a Chinese-Taiwanese group will be delayed
as the investor group wants to reassess the ailing display
maker's business.
    The investment is crucial for the cash-strapped smartphone
screen maker that has been hit by Apple Inc's  AAPL.O  slowing
iPhone sales and delayed adoption of organic light-emitting
diode (OLED) screens.
    The buyer group, which includes Taiwanese flat screen maker
TPK Holding  3673.TW  and Chinese investment firm Harvest Group,
had planned to formalise the investment decisions by mid-June.
The rescue deal for Japan Display was announced in April.
 urn:newsml:reuters.com:*:nL3N21U25Q  
    But the group has informed the company that they will make
such decisions "after re-examining the prospects for Japan
Display's business performance", the company said, adding there
was no time frame for the review.
    Japan Display has estimated it will post its fifth straight
year of net losses for the year ended in March, as disappointing
sales of Apple's iPhone XR, the only model with a liquid crystal
display (LCD) screen, dashed hopes for a turnaround.
($1 = 109.6900 yen)

 (Reporting by Makiko Yamazaki; Editing by Muralikumar
Anantharaman)
 ((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;))