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Sharp Corporation (“Sharp”) and Sony Corporation (“Sony”) today announced that they have entered into an amendment to their agreement (the “JV Agreement”) executed in July 2009 to establish Sharp Display Products Corporation (“SDP”), a joint venture, to produce and sell large-sized LCD panels and modules.
Under the original JV Agreement, Sony was to make additional capital injections to SDP, resulting in a maximum 34% ownership by Sony of SDP by the end of April 2011, subject to certain conditions set forth in the JV Agreement. Sharp and Sony have now agreed to amend the JV Agreement to suspend those contributions and plan to continue to discuss any future contributions by Sony to SDP until the end of March 2012.
On July 1, 2009, Sharp transferred its LCD panel plant in Sakai City, Osaka Prefecture, to SDP. On December 29, 2009, Sony invested 10 billion yen into SDP in exchange for new shares issued by SDP to Sony (at which time Sony owned 7.04% of the shares in SDP) and, as a result, SDP became a joint venture company of Sharp and Sony on that date. Sony has made no further investment to date.
[Impact on the consolidated financial information of Sharp, as a parent company of SDP]
No material impact from this amendment is anticipated on Sharp's consolidated financial results for the fiscal year ending March 31, 2012 and beyond.
[Impact on the consolidated financial information of Sony]
Any impact as a result of this amendment on Sony’s consolidated financial results for the fiscal year ending March 31, 2012 and beyond is currently being assessed. There is no material impact on Sony's consolidated financial forecasts for the fiscal year ended March 31, 2011 as a result of this amendment.