Sharp to take out $313 million in loans for ailing business -- report
The company will reportedly obtain the loans this week from three different banks.
Sharp, the ailing electronics maker that's in desperate need of cash, has decided to take out a major loan from three banks, according to a new report.
Sometime this week, Sharp will sign deals with three financial institutions for loans that equate to 30 billion yen ($313 million), Bloomberg is reporting, citing people who claim to have knowledge of the company's plans. Sharp hasn't publicly confirmed that it's getting loans, but a representative said that the company is hoping that many more banks will come to its aid.
Sharp has watched its business hemorrhage cash over the last couple of years, leading the company and its shareholders to have some doubt about its future. It needs to repay a $2.1 billion convertible bond by September, which won't be easy to do without some sort of financial help.
A bit of that necessary help came last week when Samsung announced that it had acquired a 3 percent stake in Sharp for $111.3 million. Still, it was a far cry from the cash Sharp needs to raise.
Samsung, seeing that, reportedly offered to acquire Sharp's printer and copier business -- a key aspect of its operation -- but the company declined.
Sharp is reportedly seeking other ways to raise cash -- including by inking a deal with iPhone maker Foxconn -- but has so far not announced any agreements.