Japan Display in talks to receive $830 million support from Ichigo
Japan Display Inc is in negotiations with Ichigo Asset Management to receive 90 billion yen ($830 million) in financial support, according to a source.
The company released a statement wherein it disclosed that it was in talks with Ichigo regarding investment, as well as a basic agreement on fund procurement. The company however said that the 90 billion yen ‘support’ was not something the company announced.
Last month, Japan Display reported its quarterly profit, detailing the company’s 11th consecutive quarterly loss. The smartphone display maker is still struggling to recover from its losses, as well as the Chinese investment firm Harvest backing out of a bailout plan. Japan Display has been struggling to raise at least 50 billion yen after this setback. Apple Inc, which Japan Display supplies, is also planning to invest $200 million, according to sources.
Ichigo is most likely to invest more than Japan Display’s $50 million target to allow the company to delve into other fields like research and development, the source who asked to remain anonymous said.
Japan Display was under examination the previous month when it was revealed that a fired executive from last year embezzled a total of $5 million from the company.