Publications
Publications
- February 2016
- HBS Case Collection
Hon Hai's Investment in Sharp
By: Mihir A. Desai, Keith Chi-ho Wong and Zachary Markovich
Abstract
In March 2012, Hon Hai Precision Industry Company, Ltd. (Hon Hai) announced its investment in the Sharp Corporation (Sharp). The deal was structured in two parts: the first had Hon Hai investing in Sharp, and the second involved Hon Hai founder, chairman, and CEO Terry Guo personally purchasing a stake in Sharp's unprofitable Sakai manufacturing plant. This case explores the dynamics of the deal and specifically focuses on valuation of the investment in the Sakai plant as well as the structure of the deal. It presents a vehicle by which to consider net present value (NPV) calculations and corporate deal structuring.
Keywords
Hon Hai; Sharp; LCD-TFT; East Asia; Net Present Value; Acquisitions; Valuation; Negotiation Deal; Acquisition; East Asia
Citation
Desai, Mihir A., Keith Chi-ho Wong, and Zachary Markovich. "Hon Hai's Investment in Sharp." Harvard Business School Case 216-035, February 2016.