Japanese asset manager Ichigo Asset Management is likely to take a nearly 50% stake in Japan Display Inc when it invests in the struggling Apple Inc supplier, a person with knowledge of the deal said on Thursday.
Japan Display announced on Thursday it plans to receive 80 billion yen to 90 billion yen ($740 million to $830 million) in financial support from Ichigo, but gave no further details.
Ichigo is offering to inject 40 billion yen to 45 billion into Japan Display by purchasing common shares upfront at 50 yen per share, two people with knowledge of the discussions said.
If Japan Display chooses to receive the maximum stake, Ichigo’s ownership would exceed 50%, both sources said, but one said the fund and the company are in talks focusing on a ratio slightly under half.
The sources asked not to be identified because of the sensitivity of the talks.
Source: Reuters.com