TOKYO Japan Display Inc's (6740.T) state-backed main investor is readying some $500 million in aid for the struggling Apple Inc (AAPL.O) supplier, whose capital has withered as smartphone sales slow, the Asahi newspaper said on Saturday.The Innovation Network Corp of Japan is focussing on a plan to issue subordinated bonds, which are lower in repayment priority than other debt, to raise about 50 billion yen, the newspaper said.Japan Display said in August the fund had pledged full financial support as the company seeks help weathering future market swings, in particular lapses in demand for iPhones from Apple, whose products account for more than half of Japan Display's sales.Japan Display, facing difficulties raising its own funding after two years of losses, wants long-term financing for such growth areas as organic light-emitting diode displays and displays for automotive use, the Asahi said.
The fund could decide on the aid as soon as this month, the newspaper said.Officials from Japan Display and INCJ could not be reached immediately for comment.
INCJ tried earlier this year to broker a merger with rival Sharp Corp (6753.T), which was instead bought by Taiwan's Hon Hai Precision Industry Co (2317.TW). Japan Display was formed in 2012 by combining the display units of Hitachi Ltd (6501.T), Sony Corp (6758.T) and Toshiba Corp (6502.T).
($1 = 103.1200 yen) (Reporting by Kentaro Hamada and Yoshiyasu Shida; Writing by William Mallard; Editing by Leslie Adler)
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Updated Date: Nov 05, 2016 22:00 PM