Qualcomm to invest $120 million in Sharp

The agreement comes after the maker of Aquos TVs nearly doubles its net loss forecast for the year to March, as a strong yen and intense competition roil Japanese electronics makers.
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Sharp's business has been hurt by the global economic slowdown
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<div style="text-align: left;"> Sharp's business has been hurt by the global economic slowdown </div>

Qualcomm, a US semiconductor company, has agreed a deal with Sharp to invest as much as $120 million in the Japanese electronics maker, which is struggling to turn around its balance sheet.

The investment will be used to jointly develop and commercialise high-quality colour and low-power displays.

By the end of the year, Sharp will sell 30.12 million shares in a private placement to Qualcomm at 164 a share, raising 4.9 billion $60 million, the company said in a statement yesterday. The offer price represents a discount of 5.7% over Tuesday’s close, while the offer size will represent 2.6% of Sharp’s enlarged capital.

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