Sharp and Hon Hai have not reached an agreement, the negotiations between the two parties will automatically terminate

The troubled Japanese electronics manufacturer Sharp announced that the negotiations between the two parties will be terminated automatically due to the failure to reach a capital injection agreement with Hon Hai before the deadline.

Sharp announced last year that it had reached a capital cooperation agreement with Hon Hai totaling approximately US$800 million. However, due to the sharp fall in Sharp's stock price, the transaction stalled.

Sharp has confirmed that the negotiations will be terminated due to a failure to reach a new agreement by the deadline. Sharp said that the reason for the failure to reach an agreement was because it did not obtain approval from the relevant department, but the company did not disclose the details. Sharp said that other financing channels are currently being evaluated.

Like competitors like Sony and Panasonic, Sharp's financial situation is extremely bad. Not only is the debt rating downgraded, but there are also record losses, and it is difficult to guarantee even if it can survive.

The 100-year-old company has launched a series of restructurings, including layoffs involving thousands of people and a comprehensive pay cut. The company also said it would acquire much-needed bank loans by collateralizing property assets such as headquarters.

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