Sharp Cancels Public Offering after Stock Price Fall

June 29, 2018

Tokyo- Sharp Corp. said Friday that it has decided to cancel its plan to publicly offer new shares worth up to 216.2 billion yen in July.

"The degree of instability of the stock market has increased due to trade friction between the United States and China and other factors," the electronics company said in a statement.

The decision, however, is believed to reflect the fall in Sharp's stock price by 20 pct since the company announced the public offering on June 5.

Sharp planned to use 185 billion yen in proceeds to buy back preferred shares held by Mizuho Bank and MUFG Bank for retirement.

The measure would help improve Sharp's financial situation as the company needs to pay heavy dividends on the shares issued when the company was in a crisis.

Sharp's financial situation started to recover after it came under the umbrella of Taiwan's Hon Hai Precision Industry Co. in 2016.

Despite the cancellation, Sharp still plans to hold talks with shareholders regarding retirement of preferred shares. Jiji Press