Chapter 2620 Privatization of Sharp?

Thursday, October 29.

Nagoya Stock Exchange, Japan.

Lee Sung-yong, executive of Samsung Group, announced a news that shocked all Japanese.

"Samsung Group has acquired 28% of Sharp Group's shares through market acquisition; Xiannv Company also owns 39% of Sharp Group's shares. The specific share summary will be completed within three days. Our two companies together, Already controlling the vast majority of Sharp’s shares, we will apply to the Sapporo Stock Exchange, Nagoya Stock Exchange, and Fukuoka Stock Exchange to privatize the Sharp Group!”

"boom……"

Everyone who heard the news was dumbfounded.

Whether you are a so-called person in the financial industry or not, whether you are a professional in the electronics industry or not, it is of course extremely shocking to hear the news that Sharp, one of Japan's prides, is being controlled by foreigners and is about to be privatized!

Several major TV stations in Japan, except for the weirdest Tokyo TV, immediately stopped broadcasting other programs, and broadcast the "Sharp privatization incident" throughout.

Sharp is an old Japanese electronics company. It can also be said that in the 1980s and 1990s, in the field of consumer electronics, their brilliance was not inferior to SONY, Panasonic, Toshiba, and Hitachi. In many cases, they were the only ones on par with SONY. .

Especially the LCD TVs produced after 2000 were all the rage. Until Xiao Qi was reincarnated, they were still occupying the mainstream of the world.

But it is a pity that when Xiao Qi was reincarnated and reborn, Sharp had already fallen into a quagmire, and was on the verge of bankruptcy several times.

Speaking of it is also full of emotion. It is obvious that they are the inventors of LCD TVs, but they have suffered huge losses on LCDs, so that the amount of losses exceeds the value of the company. It is really emotional.

But if you analyze Sharp's weakening process carefully, you will feel that Sharp is actually torturing himself. He who made himself into what he is now can't blame others at all.

Actually. It's not just Sharp. Sharp's self-torture can also be extended to Sony, Toshiba, Hitachi and other Japanese electronics manufacturers. They all look the same.

Take Sharp for example.

At the beginning, Sharp was the first to invent LCD TV, and it achieved great success all at once. Then, within a year or two, Sharp relied on high-end LCD TV products. Obtained a huge market and huge profits.

But a company cannot occupy a market forever, and there will always be pursuers joining in to grab market share.

The same is true for LCD TVs. As people are not satisfied with high-priced large-scale LCD TVs, and as manufacturers such as Samsung, LG, and Formosa continue to get involved in the LCD panel industry, Sharp's advantage suddenly becomes very weak.

It's not that Sharp's technology is backward. In fact, Sharp's technology has always been the most advanced, even when they went bankrupt, the production line of the tenth generation of LCD technology. Only the Sharp family has it in the whole world.

It's just that Sharp's ideas are behind.

They see Samsung, LG, Formosa and other manufacturers continue to occupy the low-end market share, and they are unwilling to let go of their arrogance. Go to the low-end market to compete with other manufacturers.

It just so happens that they are still number one in high-end, so Sharp made the worst decision.

Sharp decided. Sharp's LCD products give up the low-end market and extend to the high-end market, so as to meet the needs of high-end customers in Japan, South Korea, Europe and the United States.

Therefore, they piled up liquid crystal technology again and again, and made good liquid crystal products again and again.

But the facts have proved that these behaviors of Sharp, on the one hand, occupy a large amount of research and development funds, and on the other hand, they must pursue high profits in order to be worthy of the expensive manpower and material resources they spent.

In this way. Sharp's high-end LCD TVs can't be cheaper.

Users in Europe, America, Japan and South Korea are not as concerned about the quality of the TV as Sharp imagined. For high-end LCD TVs, there is simply no way to buy it.

For the same LCD TV, I bought a Samsung 50-inch TV for more than 12,000 yuan, and a Sharp one for more than 18,000 yuan. How different is the viewing effect? I don't watch movies at home every day!

On the other hand, whether it is Samsung, LG, or Taiwan's LCD panel manufacturers, they all want to sell their own LCD panels to downstream TV manufacturers, which is also a big part of their profits.

But Sharp is not like this. The LCD screens they produce are only for their own use. Even if others want to buy Sharp’s LCD panels, they will not give them back. Sharp LCD TVs have a competitive impact.

However, even if others don't use their LCD screens, Sharp's LCD TV market share is now losing ground.

In its heyday, Sharp's LCD TVs accounted for one-third of the market in Japan and South Korea, one-third in Europe and the United States, and one-quarter in China, but now they have fallen to half of the previous market.

Coupled with the high annual research and development expenses, Sharp has fallen into serious losses in the past few years.

Since the end of last year, the subprime mortgage crisis in the United States has severely hit the Japanese export market, which has also caused the Japanese stock market to continue to decline. Electronic manufacturers have also suffered a lot of losses, and Sharp's stock has not escaped the fate of continuing to fall.

However, Sharp is really stubborn. Even though it has suffered a lot of blows, it not only insists on their high-end line, but also just this year, the tenth generation LCD panel production line that made Sharp in a quagmire was launched as promised.

You may not know just what is the 10th generation LCD panel production line, but if I tell you that Samsung, LG and other manufacturers are only using the 8.5th generation in 2013, then you can know that they will launch in 2009 How advanced is the tenth generation LCD panel production line.

However, there is still such a problem, no matter how good your stuff is, if no one buys it, there is nothing you can do about it!

The 10th generation LCD panel production line dropped the profit margin from 30% of the 8th generation to about 8%. This means that the operating rate must be maintained at 80% in order to make money.

But from the very beginning, Sharp's production line was only 60%. When the European debt crisis broke out in September, it hit 40%. This tenth-generation production line is a hot potato. Not anymore!

Under such circumstances, Xiao Qi and Li Jianxi made great progress in the acquisition of Sharp Corporation.

In August last year, when he went to the capital to watch the Olympic Games, Li Jianxi discussed with Xiao Qi about buying shares in Sharp Corporation, so as to control Sharp and obtain various advanced technologies of Sharp.

Li Jianxi is looking for UBS, and Xiao Qi is looking for Citibank.

Because of the outbreak of the subprime mortgage crisis in the United States, which affected the Japanese stock market, the two giants helped them acquire the shares of Sharp Corporation, which went relatively smoothly from the beginning.

By April of this year, Li Jianxi had already bought enough 15% of the shares agreed at the beginning, but Citibank suggested that Xiao Qi should continue to absorb the shares of Sharp Corporation in order to achieve absolute control.

Otherwise, Sharp's technology is really hard to get.

After Xiao Qi discussed with Li Jianxi again, Li Jianxi agreed to increase his shares to 28%, which is the same share as the Takahashi family, while Xiao Qi was going to buy 39% of the shares, which would reach 67% , completely forming an absolute holding.

Except for Xiao Qi, everyone felt that this would be a long process, because to acquire so many stocks, more patience and opportunities were needed.

Unexpectedly, in September, with the outbreak of the Greek debt crisis, the Japanese stock market was hit hard again, and Sharp's stock price continued to plummet. One third!

Seeing such a good opportunity, UBS and Citibank immediately made a move and skillfully operated on the Japanese stock market. Through continuous suppression and increase of the stock price, under repeated fluctuations, by mid-October, Sharp's stock price had been suppressed to About 12.8 billion US dollars.

With such a continuous plunge, many people who held Sharp's shares could no longer hold on, and sold their stocks one after another, thus being absorbed by UBS and Citibank.

Since Japan's recent stock market is generally not good, many financial giants are making waves in it, and UBS and Citibank have rich experience, so the fluctuation of Sharp's stock has not attracted many people's attention.

Now that Samsung suddenly said that it has jointly controlled with Fairy Company and plans to privatize Sharp, the Japanese people first expressed that they could not accept it.

"It's really unimaginable that Sharp, a brand that our family used decades ago, is actually bought by foreigners like this?"

"Although Samsung and Fairy are good companies, we still hope that Sharp is Japanese Sharp!"

"Wow, the tricks of Samsung and Fairy Company are really powerful! But looking at this privatization, I think it must be the trick of Xiao Qi, a greedy and miserly man. He has used such tricks many times in Europe and the United States! Samsung instead No!"

"Yes! Is Xiao Qi's magic hand finally going to Japan? Now it's Sharp, and the next step is SONY, Toshiba, and Hitachi?"

"I knew that the Chinese people had ambitions for Japan. They were going to control our economy first, and then our lives!"

"Resolutely oppose Sharp's privatization. Japanese entrepreneurs, facing the two giants Li Jianxi and Xiao Qi, it's time to show your courage and ability!!"

"..."

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