Hon Hai Precision Industry will continue with plans to buy a 9.9 percent stake in Sharp despite the Japanese company's loss forecast, as CEO Terry Gou asserts the Taiwanese manufacturer is investing for the long term.
According to a Bloomberg report on Sunday, Gou flew to Japan on Aug. 3 to discuss the deal and set out new terms for the investment. Company spokesperson Simon Hsing said in a separate Bloomberg report that Hon Hai's revised investment will not be at the original 550 yen (US$7.00) per share but lower, with the possibility of buying an even larger stake.
"I still want to invest," said Gou in the report. "If you just want to look at two to three months, then I'm not interested. I'm looking at 10 to 20 years."
The CEO's assertions come after Sharp widened its full-year loss forecast eight-fold to 250 billion yen (US$3.2 billion), with plans to cut some 5,000 jobs to streamline its operations.
He added that the deal is expected to close by end-March 2013, meeting the company's timeline of a year after the announcement.