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Sharp may sell shares to Hon Hai at a lower price due to falling stock value

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With its stock price falling, Sharp may end up selling a stake of its company to Hon Hai for less than originally agreed upon.

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sharp logo

Back in March Sharp entered into a manufacturing agreement that would see Hon Hai take a 9.9 percent stake in the company for around $800 million, but with Sharp's falling stock price it looks like Hon Hai may end up paying a lot less. As the Wall Street Journal reports, the two companies are currently renegotiating the per-share price that Hon Hai would end up paying. This goes along with a previous report from Nikkei that claimed Hon Hai, better known as Foxconn, requested that the cost of Sharp's shares be decreased from the originally agreed upon ¥500 per share amid the falling stock value. However, while that report claimed that Foxconn was looking to up its stake in Sharp to 20 percent, the WSJ says that the company is still expected to acquire the original 9.9 percent — though how much the company ends up paying for that stake remains to be seen. On Monday Sharp's stock closed at a price of ¥186.