Olympus Corp is planning to issue about $1.28 billion (100 billion yen) in new shares after the sharp downward revision of the group’s net assets, the news reports said.

The medical and optical equipment maker has revised its past earning after it was revealed that it had hidden substantial investment losses by engaging in accounting fraud, the reports stated.The change has put the company’s group net assets at $588.91 million as of September 30, down some $1.54 billion from the revised figure as of March 31.

The company’s capital ratio dipped to 4.5% from more than 15%. Olympus Corp is considering issue of nonvoting preferred shares convertible into common stock.

It has also reported a net loss of $414.42 million for April-September quarter. It still remains highly competitive in the medical equipment business and commands 70% of the global endoscope market.

The new shares will be bought by companies looking to get into or upgrade their presence in the medical equipment business like Sony Corp and Fujifilm Holdings Corp, the reports said.

Panasonic Corp may also acquire some of the stock and Germany’s Siemens AG is also showing interest due to possible synergies in the medical field, the reports said.

The medical equipment maker will hold an extraordinary shareholders meeting or EGM  by April to set up a new management team and bring in changes.

The details of the new-share issuance and also potential buyers are expected to be finalized by next month.

Olympus Corporation is a Japan-based manufacturer of optics and reprography products. The company has 70% share of the global market whose estimated valued at US$2.5 billion. Its global headquarters are in Shinjuku in Japan.