On March 30, 2016 (February 22, 2016 in the lunar calendar), Foxconn acquired Sharp. Foxconn acquires Sharp On March 30, 2016, Hon Hai (known as "Foxconn" in mainland China) held a major information briefing on the Stock Exchange this afternoon. The board of directors decided to subscribe for Sharp to issue new common shares at a price of 88 yen per share, from the original 118 yen per share, a drop of 25%, and the acquisition amount dropped from the initial nearly US$6 billion to less than US$4.5 billion. Sharp also accepted the offer. Sharp said in a filing with the Tokyo Stock Exchange that it plans to issue new shares to Foxconn in exchange for Foxconn's 388.8 billion yen (approximately US$3.5 billion) capital injection. The capital injection figure is lower than the 489 billion yen Foxconn proposed last month. Hon Hai announced on March 27, 2012 that it intended to invest in Sharp. It has experienced ups and downs in the past four years, during which time it was suspended, and finally hoped for a critical time when it would achieve a positive outcome. Analysts believe that three key factors, including Sharp's creditor banking group's support, Hon Hai's continuous goodwill over the past four years, and Sharp's urgent need for capital and living water, are the key to the success of Hongxia's love affair. Before the two parties signed the contract at the end of February, Hon Hai Group quoted a purchase price of around US$6 billion, which was also higher than that of its competitor Japan's Industrial Innovation Agency. However, just before signing the contract, Hon Hai Group suddenly discovered that Sharp had a potential debt of more than US$3 billion. If there was a lawsuit or major layoffs, this debt would become real regular debt, which would cause huge financial risks to Hon Hai. In addition to sending personnel to investigate Sharp's potential debt, Hon Hai Group also announced that it had asked Sharp to provide its first quarter performance forecast report. There are indications that Hon Hai is becoming increasingly worried about Sharp's situation and needs to do more due diligence. Reuters quoted people familiar with the matter as saying that more financial data provided by Sharp to Hon Hai Group showed that in the first quarter of this year, Sharp's performance was not the originally expected profit, but a larger loss. However, Hon Hai Group quoted its acquisition price based on Sharp's earnings performance expectations. The shares in Sharp acquired by Hon Hai include Sharp's common shares and preferred shares held by major banks. The purchase amount of preferred shares is as high as US$900 million. There have been previous reports that Hon Hai has contacted the two banks to request a reduction in the transfer price of preferred stock assets. In addition, due to the unexpected potential debt, Hon Hai has required the two banks to provide more financial commitments in the future to ensure that Sharp, which operates independently, does not face huge risks. According to the plan, Hon Hai Group will acquire two-thirds of Sharp's equity, thereby gaining a controlling stake. In addition to its most important LCD panel assets, Hon Hai Group will also acquire Sharp's home appliance business. However, Sharp will maintain its independent operating status as a subsidiary of Hon Hai in the future.