Japan Display to come under control of Chinese group

Reuters TOKYO (Reuters) — Apple Inc. supplier Japan Display said on Friday it has signed a long-awaited deal under which it will receive a ¥232 billion ($2.1 billion) bailout that will give a Chinese-Taiwanese group a near-majority stake in the firm.

The group, which includes Taiwanese flat screen maker TPK Holding and China asset manager Harvest Group, will inject up to ¥80 billion by buying shares and bonds. As a result, it will own a 49.8 percent stake and become the largest shareholder in the company in place of the Japanese government-backed INCJ fund, effectively ending the government’s efforts to keep the last remaining domestic display maker out of foreign hands.

INCJ will also join the bailout by accepting a debt-to-equity swap totaling ¥75 billion and extending senior loans worth ¥77 billion. Its stake will fall to 12.7 percent from 25.3 percent after the deal.Speech

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