Japan Display Said to Receive $100 Million Investment From Apple as Part of Bailout Deal

Japan Display Said to Receive $100 Million Investment From Apple as Part of Bailout Deal

Japan Display Inc. said on Friday that it would receive a $ 100 million investment from a customer, which one source had said that Apple Inc. is part of a bailout deal under the leadership of a Chinese investment firm for the smartphone screen maker.

Japan's display is facing a funding crisis due to recent Japan display due to the Liquid-Crystal Display (LCD) due to the sale of the iPhone, iPhone 59,500, the only LCD model in Apple's 2018 lineup.

In the last financial year ending in March, Apple, which has 60.6 percent share of Japan's revenue, will join a consortium under the leadership of China's Harvest Group, to invest 80 billion yen ($ 743 million), a person Informed.

Apple refused to comment.

Japan's display said in a statement that Harvest formalized its decision to inject about $ 500 million, including an investment of $ 100 million from an unknown customer.

Later in a separate statement on Friday, the Japanese company said that another consortium member, Hong Kong-based activist investor Oasis Management has decided to invest $ 150 million to $ 180 million. The investment is dependent on the conditions of the main customer, including any major deduction.

Total investment from Harvest, Apple and Oasis will still be less than the $ 743 million target of Japan display. The company said that it is in talks with other potential investors to join the deal.

The Asahi newspaper first reported on Apple's planned investment on Thursday, sending Japan shares to 32 percent of the shares. On Friday the stock was flat.

The Japan display was pursuing a bailout deal with a Chinese-Taiwanian Union, but suitors had repeatedly delayed formal decision to assure the company's possibilities.

Taiwanese screen maker TPK Holding Company Limited and financial firm CGL Group are out of the process in the beginning of this month.

Japan's display has outstanding over $ 900 million for $ 1.5 billion to build a smartphone screen plant four years ago.

To help stabilize the Japan display's finances, Apple has agreed to slow the repayment rate for two years and consider increasing orders from the Japan display.

US tech giant will also buy some organic light-emitting diodes (OLED) screens from the Japan display for Apple Watch at the end of this year.

Japan's display was formed in 2012 by combining Hitachi Limited, Toshiba Corp and Sony Corp's Liquid-Crystal Display businesses into a government broker deal.