Sharp plans to shed Recurrent Energy as part of restructuring - report

Sep 26, 2012 - Japanese electronics group Sharp Corp (TYO:6753) intends to dispose of its US solar project development arm Recurrent Energy LLC in a restructuring plan, Kyodo News reported on Tuesday.

The company eyes proceeds of some JPY 25 billion (USD 322m/EUR 250m) from the sale of the unit, while it also plans to fetch JPY 38 billion from the sale of foreign manufacturing capacity, the report said.

The ultimate goal of the restructuring plan, which was presented on Monday to financial institutions and seen by Kyodo News, is for Sharp to return to the black in the fiscal year through March 2014. In fiscal 2011/12 the company posted a loss of JPY 376 billion.

Apart from the asset divestment and Recurrent Energy's sale, the restructuring plan also envisages 10,966 lay-offs in Japan and abroad, the disposal of Toshiba Corp (TYO:6502) shares and the consolidation of Sharp’s home appliance, office equipment and solar battery sales units into a single entity.

(JPY 100 = USD 1.286/EUR 0.999)

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