Sony is selling its 7.04 percent share in Sharp Display (SDP) for 10 billion yen, or about $12.5 million, back to Sharp Display. The transaction is expected to be completed next month. Sony acquired the stake back in December of 2009 as part of an investment in Sharp Display and the company's Saikai City plant.
Originally, the two companies had planned to use the joint venture to collaborate in the production and development of large-sized LCD panels and modules. In March of this year, Sony said that due to the changing market conditions for LCD panels, it would not make any further investments, which resulted in an agreement to sell its stake to Sharp.
Both Sony and Sharp said that the transaction will not have any material impact on their financial forecast.