Apple to Reportedly Invest $100 Million in Japan Display as Part of Bailout Deal
Citing a source familiar with the matter, a report by Reuters is claiming that Japan Display will receive a $100 million investment from Apple as part of a bailout deal since the display maker is facing a severe shortage of funding due to the Cupertino giant’s recent shift away from liquid-crystal displays (LCDs).
Having accounted for nearly 61% of Japan Display’s revenue last year, the iPhone maker will reportedly join a consortium led by China’s Harvest Group in investing up to $743 million. According to Japan Display, Harvest has agreed to inject nearly $500 million in the firm, including the $100 million investment from an “unidentified customer.”
Meanwhile, Hong Kong-based activist investor Oasis Management has also decided to invest $150 million to $180 million in the Japanese company.
The total investment from Harvest, Apple, and Oasis will be still short of Japan Display’s $743 million target. The company said it is in talks with other potential investors to join the deal.
Japan Display had been pursuing a bailout deal with a Chinese-Taiwanese consortium, but the suitors repeatedly delayed making a formal decision in order to reassess the company’s prospects. Japan Display owes Apple over $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago.
The report adds that Apple will also buy some OLED displays from Japan Display for next year’s Apple Watch.