Sharp reconstruction to uncertain. Aid will be hon hai precision industry? Or a Japanese industry innovation organization? "Determination of the moment to moment to sharp management approach. Sharp is likely on February 20 directors talkfest discussion, then make a vote by the directors in 24.
Starting from February 4, Japan's media reported sharp management basic decided to accept the message of hon hai's aid, but explore behind it, is not so simple. View points out, even in hong Shanghai style and innovation mechanism between formed the confrontation, the "support of directors have cheating" hon hai's case.
Hon hai on January 30, increase aid, put forward the proposals scale for the reconstruction of 700 billion yen. Some sharp directors and have sharp creditor's major trading Banks support the plan, did shake the innovation investment amount is about 300 billion yen.
The director thinks, "give up condition good hon hai solutions adopted innovation institutions, sharp shareholders may be held 'breach properly management and responsibility".
However the truth is not so simple. Have sharp insiders revealed, "headed by President takahashi and three, as a sharp staff director still continue to support innovation mechanism project. Support hon hai scheme mainly come from the director of financial institutions".
Innovation of aid effectiveness of "1 trillion yen"
As a result, is made up of 13 people sharp board into hong Shanghai style and innovation mechanism, and were not clear, the insiders said, "is both possible urgent status".
Hon hai and innovation organization, choose who to bring sharp bright future? Sharp management choose to sponsor's point of view is very clear. But the final answer, is not only judged by how much of the investment amount on the surface, hence the "faction".
A part of the directors tend to hon hai solution because of high capital contribution. Hon hai took out 700 billion yen, the innovation plan only to sharp body 300 billion yen. The surface of the "700 billion yen to 300 billion yuan" digital easy let people misunderstanding hon hai aid efforts. From the point of "contribution to the sharp body", is indeed, but if from the perspective of "total" is another case.
Because of sharp director degree of understanding of the plan is too low, worried the innovation of institution in February 2, to submit to the sharp inside the "the focus of the Japanese industry innovation agency proposal" this piece of writing.
Copywriting, writes sharp subject can be used as the growth of investment capital contribution for "300 billion yen"; By selling LCD subsidiary of joint venture with hon hai "ˆû display products (SDP)," sharp can get 150 billion yen. Grow a total investment of up to 450 billion yen, but also more than that.
Leather new institutions plan to will lead to a sharp troubled "culprit" -- from sharp LCD business main body, in the future and innovation organization's Japan's display (JDI) for consolidation. Before the implementation of integration over the years, for the revival, sharp original LCD business, but also to invest. Innovation mechanism for the 200 billion yen loans. A total of 650 billion yen, plus the 450 billion yen before. At this point, aid effectiveness and hon hai's 700 billion yen.
To sharp subject from capital contribution
For splitting the LCD business, takahashi President also said in a press conference on February 4: "LCD and home appliances and other products are totally different business", "(will) is divided into two pieces of operation", etc., emphasized the intention of splitting the LCD business. Even reconstruction scheme adopted hon hai, and estimate the sharp LCD business will also with LCD subsidiary of hon hai's group of optoelectronics (Innolux) integration, however, all escapes from the LCD business The fate of the sharp, stripped.
Scheme is characterized by innovation institutions, in addition to the above, with major trading Banks as the center, requiring Banks to provide financial aid of 350 billion yen to sharp.
Summer ordinary had published in May 2015, capital intensive measures, to its main trading mizuho bank and bank of tokyo-mitsubishi UFJ each assigned 100 billion yen, A total of 200 billion yen in class A preferred shares. Innovation mechanism in addition to ask two Banks free to surrender the preferred stock, also requires two lines through the way of "debt equity exchange (DES)", held by sharp cuts of creditor's rights, combined maximum to provide support for the "350 billion yen".
Institutions according to the innovation of the article, in front of 650 billion yen and financial institutions to aid, "(innovation scheme) financial aid effectiveness is as high as 1 trillion yen, much higher than reported in the press hon hai's 600 billion yen". Given that hon hai to increase aid, finally reached 700 billion yen, although distance is a bit closer, but from the point of total, innovation mechanism is still ahead.
In favor of the hon hai scheme may also be "violation of managing a company's obligation"
If only looked at hon hai, innovation, organization capital contribution as many capital contribution, and indeed may misjudge the essence of things. The comparison of "700 billion yen to 300 billion yen" is "see the forest for the trees", very difficult to judge which condition is better. Moreover, hon hai's bailout did not require financial institutions to provide aid, it also makes things more complicated.
As mentioned above, the innovation plan calls for financial institutions "bleeding" of the organization. Book value and hon hai's plan to buy preferred stock, in the interests of the financial institutions. "So in favor of hon hai's plan is the main trade bank mizuho bank directors who and its partners." (sharp insiders)
These partners may include Tokyo mitsubishi UFJ bank directors, who came from mitsubishi UFJ is contributive to mizuho and Tokyo - Japan's industrial investment funds solution (JIS) two clubs outside directors, namely JIS, chairman of live Tian Changhong and the President saito into one.
In 2015, at mizuho bank and bank of tokyo-mitsubishi UFJ buy sharp class A preferred shares of A total of 200 billion yen, JIS paid 25 billion yen for the better the condition of class B preferred shares, dividends for the first time reached 7 ~ 8%. Innovation institutions will plan calls for the shares into common stock, also can make JIS "sweet".
But these are only as "investors" logic. According to the sharp logic of shareholders and management, in this point, the compression liabilities innovation organization plan better.
A master of corporate legal affairs lawyer pointed out that "if the intention of Banks and funds reflected, associated with sharp directors voted to hon hai, but may be held 'violation of managing a company obligation".
Innovation agency insiders at this point also cannot hide anger: "in the eyes of sharp existing shareholders, the Banks and funds is in choosing a favorable solution, and then to responsibility. Both for other shareholders, or for sharp, financial institutions should lenders responsibility, said that in order to select hon hai Xia Pucai scheme, is cheating."
A new twist - "special interested party"
Around the stakes, and now there's a new twist, that is Japan's "company law" the regulation of "special" stakeholders.
To prevent the director to judge according to their own interests, "company law" regulation "special interested party shall not participate in the vote of the board of directors". Bank from two sharp director has resigned from his post as a bank, it is hard to proof the existence of the stakes. But the two clubs outside directors from JIS is currently chairman and President of JIS respectively, the decision is hon hai plan vote, or innovation institutions may be particularly interested party.
Actually, sharp's adviser has been submitted to sharp lawyer firm, said "JIS club outside directors may be particularly interested party", on February 4 board, "including JIS" 13 and 11 people "not including JIS" respectively for a vote.
The bill is about "continue to discuss plans for hon hai and innovation mechanism of two", because the two voting result is the same, so it's not a problem. But, to vote is to choose the hon hai or innovation mechanism, JIS two directors may hold "the tie-breaking vote.
If including and excluding JIS two vote result is different, how should handle? For this, the aforementioned lawyer said: "in order to prevent this happening, general in advance will be fully discussed at the board meeting, choose one of the". However, about whether JIS directors to participate in the vote on the defensive side of already secretly, sharp reconstruction prospect becomes more uncertain.
Takahashi President pieces "at"
Hon hai's plan and innovation mechanism and a decisive differences, that is benefits, "whether to ask management headed by takahashi President resign". Refresh the management innovation service, and hon hai pledged to keep the existing management system.
In hon hai scheme suddenly become a hot spot of that day of, takahashi President said at a press conference: "I first responsibility is to try my best to implement structural reforms of business. For after things, did not consider now." Media reports said "this show the willingness to continue to serve", if takahashi President for his treatment and vote for hon hai, I'm afraid to hide but stigma "cheat".
But takahashi presidents had said to the people around: "even if death, also want to choose to have sharp way to live on."
If this is true, when making a decision, he can't receive the financial institutions and funds, or treatment. This also applies to gaoqiao President other than a director.
For existing shareholders, employees and customers, the best way is which one? This is extremely difficult to judge, to 13 directors.
Settlement conference on February 4, sharp takahashi President said "option 1 will be within one month from 2 home home"
