By APD writer Alice

Japan Display Inc. Japan said it had agreed to receive financial support worth 80-90 billion yen ($737-828 million) from Ichigo Asset Management Ltd., a private equity fund, to strengthen its weak financial capacity.

The display maker said the financial assistance from the new sponsor will start from February or March 2020, after the relief plan is completed in January.

Apple Inc., a major customer of Japan Display, and a number of other companies had previously proposed investing up to 46.72 billion yen ($430 million) in the company, but the US tech giant considered a plan to buy a part of Japan Display's manufacturing facilities in Ishikawa prefecture for 21.73 billion yen ($200 million). Apple's change is considered to pave the way for the Ichigo fund to get involved.

In addition, another potential financial sponsor, electronics giant Wistron Corp. of Taiwan (China), has proposed providing direct investment for Japan Display.

Initially, Japan Display tried to reach financial support of up to 80 billion yen from a consortium between Chinese and Taiwanese businesses, but this plan was delayed in September when Harvest Tech Investment Management Co. of China pulled out of the consortium, forcing Japan Display to look for new potential investors.

(ASIA PACIFIC DAILY)