Japan's Sharp plans $1.68bn in share sales

Japanese electronics maker Sharp on Wednesday said it planned to raise as much as $1.68 billion in a pair of share sales aimed at shoring up its dented balance sheet. The move was the latest by the Osaka-based firm to tap new financing as it undergoes a painful restructuring alongside rivals Sony and Panasonic. The trio are overhauling their business in a bid to survive in the cutthroat global electronics market as foreign rivals undercut higher-cost Japanese counterparts. Sharp said it planned to raise 166.3 billion yen ($1.68 billion) through a public share offering worth 148.96 billion yen and a smaller private offer to three companies worth 17.3 billion yen. The firms are power-tool maker Makita, building materials manufacturer Lixil Group and automotive parts giant Denso. Cross-holding shares is common among Japanese firms. Sharp, which said an offering price would be set next month, also upgraded its outlook for the six months to September, saying it now expected to book a 10 billon yen net loss, from an earlier 20 billion yen projected shortfall. That would mark a dramatic turnaround from the same six months in 2012 when Sharp posted a whopping net loss of 387.6 billion yen. The firm also doubled its operating profit projection for the period to 30 billion yen. Sharp has been hammered by credit rating downgrades and record losses, which saw the century-old firm warn last year it may not survive the downturn. It has since said its future was no longer in doubt as it embarks on a painful restructuring including thousands of job cuts and slashing wages from the factory floor to the boardroom.