OSAKA - Sharp Corp. is considering selling the land of its Sakai plant, one of the world's largest production sites for liquid crystal display panels, it has been learned.
Sharp is currently working to improve its financial strength by selling some of its properties.
As it is planning to shift its management resources to the competitive businesses of small and midsized LCD panels for smartphones and major household appliances, the Japanese maker will likely step up selling parts of its noncore businesses.
The 126-hectare plant in Sakai, Osaka Prefecture, has a book value of 38.1 billion yen (S$600 million).
In addition to factories for LCD panels and solar batteries, the premises also contain factories belonging to about 20 manufacturers of liquid crystal-related parts.
As it is difficult to immediately sell the land as a single package, Sharp is mulling securitizing and subdividing the properties to sell them to a number of corporate investors and others, according to sources.
Sharp is also planning to sell its Ichigaya Building in Shinjuku Ward, Tokyo, which has a book value of 42.2 billion yen, to Taiwan's Hon Hai Precision Industry Co.
To support Sharp's financing, its main banks--Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ--have agreed to extend about 60 billion yen in bridge loans.