Canada Markets close in 1 hr 47 mins

Japan Display to receive $640 million in state-fund aid

Japan Display Inc's logo is pictured at its headquarters in Tokyo, Japan, August 9, 2016. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Japan Display Inc's <6740.T> state-backed main investor has agreed to provide 75 billion yen (517.13 million pounds) in aid to the struggling display maker, in a publicly funded bailout to help it reduce its dependence on Apple Inc .

The Innovation Network Corp of Japan (INCJ) will purchase 45 billion yen's worth of convertible bonds to be issued by Japan Display, Japan Display said in a regulatory filing on Wednesday.

INCJ, which has a 36 percent stake in the firm, will also provide 30 billion yen in subordinated loans, the filing showed.

The funds will allow Japan Display to invest in advanced screens for cars and gaming headsets as growth in the smartphone market slows.

(Reporting by Makiko Yamazaki; Editing by Stephen Coates)