7 Mar 2013

Samsung buying stake in Sharp

9:02 am on 7 March 2013

Samsung Electronics is to buy a 3% stake in Sharp, a Japanese electronics maker, for 10.4 billion yen ($US110 million).

Sharp has been trying to restructure its operations amid mounting losses. However, it found it tough to raise money after its credit rating was cut to "junk" status last year.

Earlier, shares in Sharp rose by 17% to 350 yen on the Tokyo Stock Exchange, before closing at 341 yen.

The BBC reports Sharp's fortunes, like that of other Japanese electronics makers, have been hurt by a decline in global demand and falling prices of TVs.

A loss of 450 billion yen is forecast for the year to 31 March 2013.

The company has announced a series of measures, including cutting 5000 jobs almost 10% of its workforce, in an attempt to cut costs.