OSAKA, April 2 (Kyodo) — Struggling Japanese electronics maker Sharp Corp. plans to raise about 100 billion yen through a public stock offering to repay part of 200 billion yen in convertible debt due in September, sources close to the matter said Tuesday.
The company's two main creditor banks -- Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ -- have given a nod to the plan amid signs of pickup in Sharp's performance, reversing an initial cautious stance, the sources said.
Sharp aims to secure the remaining 100 billion yen through expanding the sales of liquid crystal display panels, the sources said.
The company in deciding on the timing of the public stock offering will take into account movement in its share price, the sources said.
It will announce on May 14 its group earnings results for the business year ended in March as well as its medium-term business plan through fiscal 2015, the sources said.
As for the public share offering, the two main banks first opposed the plan due to concern it would undermine the value of stock held by existing shareholders and urged Sharp to reconsider ways of raising capital, eyeing selling some of its operations.
But the two banks have approved the plan, as Sharp now projects to return to the black on a group operating basis in the October to March period and anticipates an increase in LCD sales after concluding a capital and business tie-up with Samsung Electronics Co. of South Korea.