Electronics giant Samsung is buying a 3 percent stake in Japanese technology company Sharp. The deal will cost the South Korean company ১১ 110 million. Sharp, who has a “junk” credit rating, hopes to work with Samsung to restructure their declining business.

Sharp’s share price rose nearly 18 percent on the Tokyo Stock Exchange shortly after news of the new deal broke.

Samsung will not only strategically support Sharp, but also emerge as a huge buyer of the Japanese company’s products, such as flat screens.

A recent statement from Samsung also points in that direction. The company says the transaction will help the company supply LCD panels from a variety of sources.

Several other Japanese companies, including Sharp, have been economically weakened by falling prices and demand for television worldwide. As of March 31 this year, the company had forecast a loss of 450 million yen. Sharp cut about 10% (5,000) of jobs to reduce losses.

Sharp’s share price fell nearly 60 percent last year. At the time, Taiwanese company Hon Hai wanted to buy a 10% stake in Sharp for 800 million. In return they demand a seat on the board of directors of the Japanese manufacturer, which Sharp is not keen to give.

However, Samsung has said it will not be involved in Sharp’s business management. Industry experts believe that the agreement has been completed due to many reasons.