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Japan Display to receive up to ¥75 billion ($640 million) from govt-backed fund
TOKYO (Jiji Press) — Innovation Network Corp. of Japan, a government-affiliated investment fund, decided Wednesday to provide up to ¥75 billion in financial support to Japan Display Inc.
INCJ, the top shareholder of Japan Display, decided on the aid as the display maker found it difficult to procure funds for strategic investment on its own due to its slumping earnings amid fierce competition with overseas rivals.
In response to the move by INCJ, three major creditor banks of Japan Display will decide whether to revive their ¥60 billion line of credit for the company, sources said.
Japan Display will procure ¥45 billion by issuing bonds to INCJ and borrow ¥30 billion from the fund.
With the funds, Japan Display will accelerate the development of organic electroluminescence displays.
In a related move, Japan Display said Wednesday that it will make organic electroluminescence display producer JOLED Inc. a subsidiary in the first half of fiscal 2017 by additionally acquiring JOLED shares from INCJ, with the aim of boosting its technological prowess in the field.
Japan Display’s equity stake in JOLED will increase to 51 percent from 15 percent at present in terms of voting rights.
Japan Display was created in April 2012 through the integration of the liquid crystal display operations of three major Japanese electronics makers — Hitachi Ltd., Toshiba Corp. and Sony Corp.
JOLED is currently owned 75 percent by INCJ in terms of voting rights. Sony and Panasonic Corp., also a major electronics maker, each have a stake of 5 percent in the firm.
TOKYO (Jiji Press) — Innovation Network Corp. of Japan, a government-affiliated investment fund, decided Wednesday to provide up to ¥75 billion in financial support to Japan Display Inc.
INCJ, the top shareholder of Japan Display, decided on the aid as the display maker found it difficult to procure funds for strategic investment on its own due to its slumping earnings amid fierce competition with overseas rivals.
In response to the move by INCJ, three major creditor banks of Japan Display will decide whether to revive their ¥60 billion line of credit for the company, sources said.
Japan Display will procure ¥45 billion by issuing bonds to INCJ and borrow ¥30 billion from the fund.
With the funds, Japan Display will accelerate the development of organic electroluminescence displays.
In a related move, Japan Display said Wednesday that it will make organic electroluminescence display producer JOLED Inc. a subsidiary in the first half of fiscal 2017 by additionally acquiring JOLED shares from INCJ, with the aim of boosting its technological prowess in the field.
Japan Display’s equity stake in JOLED will increase to 51 percent from 15 percent at present in terms of voting rights.
Japan Display was created in April 2012 through the integration of the liquid crystal display operations of three major Japanese electronics makers — Hitachi Ltd., Toshiba Corp. and Sony Corp.
JOLED is currently owned 75 percent by INCJ in terms of voting rights. Sony and Panasonic Corp., also a major electronics maker, each have a stake of 5 percent in the firm.