Sharp (TYO:6753) will transfer its subsidiary, Sharp Fukuyama Laser, to Hon Yuan International Investment, a subsidiary of Hon Hai Precision Industry (TPE:2317), according to a Wednesday filing on the Tokyo Stock Exchange.

The deal, set for July 1, involves an absorption-type corporate split, with Sharp Fukuyama Laser acquiring Sharp's laser and semiconductor businesses. This move aligns with Sharp's strategy to focus on its core brand business and streamline operations.

The transaction will exclude Sharp Fukuyama Laser and its Indonesian unit, P.T. Sharp Semiconductor Indonesia, from Sharp's consolidated financials.

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