FILE PHOTO: The logo of Japan Display Inc is seen at the production line of the LCD panel factory in Mobara, Chiba prefecture, June 3, 2013. (REUTERS photo/Toru Hanai/File Photo
TOKYO (Reuters) – Japan Display Inc., is set to receive an investment of up to $100 million in Apple computer, Inc., its biggest customer, the Asahi newspaper reported on Thursday, sending the display-maker’s shares are up 32% in Tokyo, japan.
Japan Display will be faced with a funding crunch, due to Apple’s recent shift to liquid-crystal displays (LCD), and a lower-than-expected sales of the iPhone, XR, is the only LCD model in the company’s 2018 and the line-up. Apple has been accounting for 60% of Japan Display’s revenue.
The representatives of Japan Display, and Apple’s separately, declined to comment on the report.
Japan Display was the pursuit of a bailout deal with Chinese / Taiwanese consortium, but to the suitors a delay of up to eur 80 billion yen ($741 million) in investment to get to a re-evaluation of the prospects of the company.
The members of the Consortium, the Harvest Group, and the Oasis Management Company Ltd was set Thursday as a deadline to decide on the investment. Taiwanese display maker TPK Holding Co. Ltd. and the company’s financial CGL Group is dropped from the process earlier this month.
A spokesman for the consortium declined to comment.
Japan Display’s shares have increased by 18% at the end of the morning trade in Tokyo, japan, on their way to their best day since mid-May.
Japan Display was formed in 2012 by combining the liquid-crystal-display businesses of Hitachi Ltd., Toshiba Corp. and Sony Corp., in a government-brokered deal to me.
($1 = 107.9900 of yen)
Report by Kevin Buckland; additional reporting by Makiko Yamazaki, Tokyo & Stephen Nellis in San Francisco; editing by David Dolan & Uttaresh.V