Reports: Sharp may spin off small LCD unit

Sharp Electronics may ask the Japanese government to help it spin off part of its LCD display business.

As part of its ongoing restructuring plan, the Tokyo-based company hopes that the government-supported Innovation Network Corp. of Japan would invest in its small and medium liquid crystal display unit, sources told The Wall Street Journal and Reuters.

Sharp, which has faced tough competition from LG and others in the smartphone and tablet display category, aims to spin-off the unit in the current fiscal year. It seeks a 100 billion yen investment but would keep a majority of the unit, sources said.

Sharp is on track for its third annual net loss in four years and has been trying to negotiate its second major bailout since 2012. With other costs cuts including staff reductions, Sharp is looking to get aid from lenders, which already hold 600 million yen ($5 billion) in Sharp debt.

Its display unit provides about one-third of the company's sales and Sharp has denied plans to sell the unit. A Sharp spokesman confirmed that the company was considering changes in its LCD business, but says no decision had been made.

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