By Takashi Mochizuki and Wayne Ma
Foxconn Technology Group doesn’t plan to adjust its planned ¥489 billion ($4.30 billion) investment in embattled Japanese consumer-electronics company Sharp Corp. but terms for creditors could be revised as negotiations continue, people familiar with the matter said.
The two companies aim to seal a near $6 billion deal early next week after one more round of negotiation, the people said. Foxconn /quotes/zigman/168568/delayed TW:2354 +0.11% and Sharp /quotes/zigman/197304/delayed JP:6753 +2.66% are optimistic that the Japanese company’s recent disclosure of an additional ¥350 billion in contingent liabilities or potential financial risk, won’t derail the deal, the people said.
Since Monday, Foxconn and Sharp have deployed hundreds of people across all of Sharp’s locations to study the latest list of financial risk, the people said. The teams have been meeting around the clock and late into the night to determine whether the new risks are acceptable, the people said.
A Sharp spokesman said negotiations are continuing with Foxconn and declined to comment when asked whether the company’s board would need to meet again to approve revised deal terms.