Japan Display bailout suffers blow as Taiwan firm leaves investor group
TOKYO/TAIPEI, NNA – The bailout plan for Japan Display Inc., a money-losing liquid-crystal-display maker, suffered a setback as a key prospective investor left a Chinese-Taiwanese rescue consortium.
Japan Display said in a statement on Monday that Taiwanese panel-maker TPK Holding Co. had withdrawn from the investor group that has been considering a total capital injection of up to 80 billion yen ($740 million). TPK had been expected to invest $230 million.
A spokesman for TPK, Freddie Liu, told NNA Monday: “We made the decision after considering the potential risks the transaction may incur and the overall industry situation.”
Taiwan investment fund CGL Group, another member of the consortium, has not informed Japan Display of its decision, although Japan Display said Friday it had expected a final decision from the consortium by June 17.
The consortium has already twice delayed its decision on capital injection.
Japan Display also said a third member of the consortium, China’s Harvest Tech Investment Management Co., had notified it that the fund would postpone making a final decision on the bailout package until June 27.
Oasis Management Co. of Hong Kong, a new prospective investor, has also told Japan Display that funds that it advises will make a decision on whether to invest up to $150 million by June 27.
Japan Display said last week it would shed more jobs, close some smartphone display production lines and replace its chief executive amid continued losses.
Yoshiyuki Tsukizaki, president and CEO, will resign from the positions at the end of September under an early retirement program. He will be replaced by Minoru Kikuoka, chief financial officer.
Japan Display was established in 2012 following the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp. with support from Japanese state-backed fund INCJ Ltd.