Sharp has approved an offer from Hon Hai Precision Industry and related companies to acquire more than 66 percent of the company’s voting stock, making the Taiwanese contract manufacturer the new parent of the Japanese firm.

The deal, which will bring to ailing Sharp funds for investment in newer technologies like OLED, will be done through the issue of new shares to Hon Hai and partner companies for 489 billion yen (US$4.4 billion). Hon Hai will also acquire shares held by lenders to Sharp for around 200 billion yen.

A maker of Apple’s iPhone and other key consumer electronics products, Hon Hai, which goes by the trade name Foxconn, has long eyed Sharp for its display business and manufacturing know-how. The Japanese company is also a supplier to Apple.

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