Japan Display to Come under Chinese-Taiwanese Consortium
Tokyo, April 12 (Jiji Press)--Japan Display Inc. <6740> on Friday announced a capital reinforcement plan that will effectively place the struggling maker of small and midsize liquid crystal display panels under the control of a Chinese-Taiwanese consortium.
The plan calls for a capital increase of 117 billion yen, including up to 80 billion yen of investment from the Suwa Consortium, formed by Taiwanese touch panel maker TPK Holding Co. and Chinese and Taiwanese investment funds.
The consortium will initially hold a voting-rights share of 49.8 pct in JDI, and the share can be increased a bit above 65 pct.
INCJ Ltd., a Japanese state-backed investment fund, will lose its status as the largest shareholder of JDI, although it plans to provide additional financial support to the company.
JDI was established under the Japanese government's initiative in 2012, through the integration of small and midsize LCD panel operations at Sony Corp. <6758>, Hitachi Ltd. <6501> and Toshiba Corp. <6502>.
[Copyright The Jiji Press, Ltd.]