Foxconn Technology Group offered 600 billion yen or approximately $5.1 billion to purchase struggling Sharp Corp the Japanese based electronics maker.
This news came from a source familiar with these talks in what would mark the biggest acquisition since 2009 for the iPhone assembler.
A decision of accepting or rejecting this bid was expected prior to the end of this month, said the company source, who asked not to be identified.
The largest electronics contract manufacturer in the world offered to make an investment in 2012 with Sharp, but those discussions did not come to fruition.
Talks were revived over the last year after Sharp turned to Innovation Network Corp from Japan, which is government back for its funding as a new round of payments on its debt loomed.
Foxconn is looking to expand its business beyond just the assembly of products as well as logistics, through adding a broader range of components to its current lineup.
Sharp is one of the largest makers of smartphones and tablet displays in the world. It could win additional volume from customers of Foxconn such as Xiaomi Corp and Amazon.com.
Shares at the Japanese company surged in Tokyo nearly 25% and closed Thursday up by 6%, taking the market value of the company to over 218 billion yen. Last year its stock retreated by almost 53% and by almost 20% during 2014.
Sharp had been saddled with 791 billion yen in debt as of this past September, according to more data that Bloomberg was able to get.
The company, based in Osaka, had booked over 1.1 trillion in losses the last four fiscal years, as stronger competition from Chinese and South Korean rivals undercut its overall business.
Apart from the Foxconn bid, Sharp is pondering another bid that is competing from INCJ, cited a person unfamiliar with the family.