Sony, Toshiba, Hitachi make joint venture official, form Japan Display Inc.
Sony, Toshiba and Hitachi officially joined forces today, cementing a government-backed joint venture that's been in the works for a few months, now. Together with the government-funded firm Innovation Network Corporation of Japan (INCJ), the three manufacturers will now form an entity known as Japan Display Inc., slated to launch during the Spring of 2012. INCJ is providing the lion's share of the funding (approximately $2.6 billion), giving it a 70 percent stake in the newly formed venture. The other three, meanwhile, will each control ten percent of the company, which will encompass their respective small-display subsidiaries. The stakeholders are hoping that today's announcement will help revive their sagging display sales, with some extra help from Panasonic, which also announced that it's selling one of its biggest domestic factories to the freshly minted Japan Display, for an unnamed sum. Find more details in the full PR after the break.
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INCJ, Hitachi, Sony and Toshiba Sign Definitive Agreements Regarding Integration of Small- and Medium-Sized Display Businesses
15 Nov, 2011
TOKYO, November 15, 2011 – Innovation Network Corporation of Japan ("INCJ"), Hitachi, Ltd. ("Hitachi"), Sony Corporation ("Sony") and Toshiba Corporation ("Toshiba") announced today that they have signed definitive agreements to integrate their small- and medium-sized display businesses in a new company to be established and operated by INCJ, which is planned to be named Japan Display Inc. ("Japan Display").
Pursuant to the definitive agreements, all of the issued shares of certain subsidiaries of Hitachi, Sony and Toshiba engaged in the small- and medium-sized display business (i.e., Hitachi Displays, Ltd., Sony Mobile Display Corporation and one other Sony subsidiary*, and Toshiba Mobile Display Co., Ltd., collectively referred to as the "Subject Subsidiaries") and other assets are planned to be transferred to Japan Display, in which each of the four companies INCJ, Sony, Toshiba and Hitachi will invest. INCJ, as a public-private partnership that provides financial, technological and management support for next-generation businesses, will invest a total of 200 billion yen in Japan Display in exchange for shares to be newly issued to INCJ by Japan Display as a third-party allotment.
Japan Display is expected to utilize the world's best high value-added technologies of the Subject Subsidiaries and establish new production lines by utilizing funds provided by INCJ, in order to meet the market demand for high value-added products. In addition, through efficient use of the existing production capabilities of the Subject Subsidiaries, Japan Display aims to improve its cost competitiveness to solidify its position as a global leading company in the small- and medium-sized display market. The business is scheduled to begin operations in Spring of 2012, subject to the receipt of any necessary government approvals.
