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Annual Report 2013 53
Business Divestiture
Sharp Corporation “The Company” entered into an agreement
to execute capital and business alliance with four companies of
the Hon Hai Group on March 27, 2012.
In association with the above capital and business alliance,
the Company has transferred a part of shares of its owned sub-
sidiary, Sharp Display Products Corporation (“SDP”), to SIO Inter-
national Holdings Limited, an investment company of Mr. Terry
Tai-Ming Gou, the representative of Hon Hai Precision Industry
Co., Ltd (“Hon Hai”).
Furthermore, the Company, Toppan Printing Co., Ltd. (“Top-
pan”) and Dai Nippon Printing Co., Ltd. (“DNP”) executed a ba-
sic agreement on April 10, 2012, with regard to the business
integration of the LCD color filter businesses operated by Top-
pan, DNP and DNP’s wholly owned subsidiary, DNP Color Techno
Sakai Co., Ltd. (“DNP Color Techno Sakai”) at the Sakai Plant,
into SDP, and conducted deliberations on concrete issues.
The Company resolved at its board of directors meeting held
on May 24, 2012 to execute business integration agreements
with Toppan and DNP respectively and transfer the LCD color
filter businesses at the Sakai Plant operated by Toppan, DNP and
DNP Color Techno Sakai, to SDP in the manner of a simplified
absorption-type company split. In August 11, the simplified ab-
sorption-type company split came into effect.
(a) Outline of business divestitures
(1) Name of parties who succeed the divested business
SIO International Holdings Limited, Toppan Printing Co.,
Ltd., Dai Nippon Printing Co., Ltd and DNP Color Techno
Sakai Co., Ltd.
(2) Nature of divested business
Development, production and sales of LCD panels
(3) Aim of business divestiture
With the efforts such as 1) promotion of the enhancement
of cost competitiveness and profit performance through
maintaining a high facility operation rate of SDP by making
practical use of Hon Hai’s purchasing power and 2) inte-
gration of the LCD color filter businesses, the Company
is seeking to promote further efficiency of the large-size
LCD business including the businesses of color filters, the
primary component of LCD panels, as well as to achieve
improvement of the competitiveness of such businesses.
(4) Date of business divestiture
[1] Transfer of shares July 12, 2012
[2] Simplified absorption-type company split August 11,
2012
(5) Other items with regard to outline of transactions which
include description of legal form
[1] Transfer of shares
The Company will receive only assets such as cash as
consideration for the transfer of shares.
[2] Absorption-type company split
The method to be employed is a simplified absorption-
type company split which designates Toppan, DNP and
DNP Color Techno Sakai as split companies and SDP as
their succeeding company.
8. Business Combination
(b) Outline of accounting method
(1) Transfer profit and loss
Yen
(millions)
U.S. Dollars
(thousands)
Loss on sales of stocks of subsidiaries and affiliates ¥ 3,346 $ 35,978
Loss on change in equity 705 7,581
Financial Section