Sharp today announced that it has accepted a takeover offer from Taiwan's Precision Industry (Foxconn), winning over a bid from an investment group backed by the Japanese government. Sharp said it would issue around $4.4 billion worth of new shares to Foxconn, known formally as Hon Hai Precision Industry. The Taiwanese company will will own the voting rights of 66.07% of Sharp's shares.Foxconn's total investment is set to be more than 650 billion yen ($5.8 billion) in the liquid crystal display maker.

Sharp said that Hon Hai's investment would allow the company strengthen the competitiveness of its display business.

Sharp will also allocate about 200 billion yen on the development of OLED technology, and further invest in other businesses such as IoT, artificial intelligence (AI), energy, automotive and industrial solutions.

The agreement will see Sharp start mass-producing OLED screens by 2018, around the time Apple is expected to adopt the next-generation displays for its iPhones. The company plans to utilize both IGZO and LTPS technologies in order to overcome difficulties that existing OLED display products are facing: produce products with low power consumption with low cost.

Following the agreement, Sharp said it would remain indepentent, retain its existing employees, the Sharp brand, its research and development and manufacturing functions in Japan.

Last minute delay?

Although Sharp announced tghe deal with Foxconn, the Taiwanese manufacturer has been thrown into question by a last minute delay.

Foxconn said it had received new information from Sharp which needed to be clarified. The company said that Sharp had couriered over "new material information" to the management.

"We will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation," the Taiwanese company said.