Sharp Corp has declined an offer by Samsung Electronics to purchase its copier and printer unit. This a provision included in the deal that would allow Samsung to Invest in Sharp for a 3% stake worth US$110 million.
According to Sharp spokeswoman Miyuki Nakayama, "We did get a proposal from Samsung but we declined." There was no mention as to how much Samsung offered for the units and as to the reasons for Sharp's refusal.
The investment was based on Sharp's need to repay US$2.1 billion convertible bond to fall due on September. Many analysts view that in selling the profitable copier business, cash would be raised but it definitely lose one of the few revenue streams Sharp still retains, affecting overall cash flow. Another agreement was also signed by Sharp, this time with Qualcomm to invest around US$120 million.
The copier unit produces photocopiers, printers, fax machines for home and office use.
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