Samsung set to buy 3% stake in Sharp: Report
TOKYO (AFP) - South Korean electronics giant Samsung is set to buy a three-percent stake in struggling Japanese rival Sharp via a capital increase, a press report said on Tuesday, a deal that would give Samsung greater access to smartphone and tablet computer screens.
The Japanese economic newspaper Nikkei said in its online edition that Sharp would sell Samsung new shares worth around 10 billion yen (S$134 million), and use the funds it earned to bolster its bottom line.
An official announcement was expected on Wednesday, Nikkei said.
Sharp has suffered from stiff competition in the market for liquid crystal screens that has pushed prices lower, and would now provide such products made at its plant in Kameyama, central Japan, to Samsung on priority.