On Monday, Japan Display announced that a planned investment of up to JPY 80 billion (US $ 729.33 million) from the Chinese-Taiwanese group will be delayed as a group of investors want to reassess the business situation that emerged in the hospital.
The investment is key to a money maker that has been hit by the slow sale of Apple iPhone and the delayed adoption of organic light emitting diode (OLED) screens.
The group of buyers, which includes Taiwanese flat panel manufacturer TPK Holding and Chinese investment company Harvest Group, planned to formalize investment decisions by mid-June. In April, a rescue action for Japan Display was announced.
However, the group informed the company that they would make such decisions "after re-examining Japan Display's business performance prospects," the company said, adding that there was no time frame for the review.
Japan Display estimates that after its fifth straight year of net losses for the year ending in March, the disappointment of Apple iPhone XR sales, the only liquid crystal display (LCD) model, has broken the hopes of a turnaround.
© Thomson Reuters 2019