Japan Display announced that it received notice from TPK, an electronic component manufacturing company, that the Taiwanese manufacturer has decided not to invest a proposed $230 million to rescue Japan Display, according to media reports.
Japan Display is in need of funds after it was struck by Apple’s slowing iPhone sales and a late shift to organic light-emitting diode screens. So TPK’s decision to withdraw is a blow to Japan Display.
According to media reports, Japan Display had previously said that it is planning to raise $737 million from a consortium of Chinese and Taiwanese investors. Other consortium members Cosgrove Global and Topnotch Corporate are yet to decide on whether they would invest in the company. Japan Display was expecting a combined $130 million from those members.
The company is in talks with Harvest Tech Investment Management who is also a member of the consortium, and the new consortium member Oasis Management Company on whether to invest in the company. The confirmation is expected to come in by the end of next week
The press release said, “In addition, as a candidate for a new expected investor of the expected allottee, JDI has been informed by Oasis Management Company that regarding the expected investment amount ($ 150 million) to be provided by the fund that it operates or advises, it will consult with its relevant internal bodies by June 27, 2019 in order to make the internal resolutions required to be implemented for the investment.”
Japan Display’s share price fell as much as 11 percent in the morning trade after it released a pre-market statement.