According to the report of Japan’s Kyodo News Agency, Denso Group considers injecting capital into Sharp, which is undergoing restructuring, in order to reduce the cost of development of parts and components and investment in equipment.
A senior executive of the Denso Group recently stated that if the cooperation plan with Sharp is finalized, then the electric installation may inject billions of yen into the latter, which will help Sharp improve its financial situation and support its restructuring plan.
In addition to Denso, Sharp also applied for a capital injection of 10 billion yen each to Japan Livestock Group and Makita Co., Ltd. Sharp may raise funds through public offerings, and will use its opportunity to raise huge capital to adjust its financial management. It is reported that Makita accepted Sharp's application for capital injection on the 19th.
According to reports, Denso and Sharp are currently jointly developing a vehicle air purifier, which also supplies electric vehicle navigation system panels. Denso is still evaluating the capital injection plan and will decide whether or not to inject capital after it is determined that it can greatly promote its business.
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