TOKYO: Shares of Sharp Corporation jumped by as much as 13 per cent yesterday on reports the struggling Japanese electronics maker was looking at various restructuring avenues to gain favour with its creditors for a capital boost.
Analysts have said Sharp, which has lost nearly $7 billion in market value since the start of January, has many profitable business parts it could sell for a sweeping revamp needed as a prerequisite for new loans from its creditors.
But senior bankers said there have been no indications of plans mentioned in local media being considered by the TV and display maker's leading banks.
Sharp's two main lenders, units of Mizuho Financial Group and Mitsubishi UFJ Financial Group, are poring over the company's restructuring plan to determine how much it needs to survive as it also renegotiates terms of an investment by Taiwan's Hon Hai Precision Industry.
The Nikkei business daily said Hon Hai was looking to double its stake in Sharp to about 20pc from a 9.9pc agreed in March, and wants to pay about 200 yen per share, compared with the 550 yen initially agreed.