Although LCD panel prices have risen sharply in the past six months, Samsung, LG and other companies have delayed the withdrawal of LCD production capacity, the direction of reducing LCD investment has been determined. Recently, South Korea approved Samsung's decision to sell Suzhou panel factory, which will be taken over by TCL's Huaxing optoelectronics.
According to reports, Samsung display said on February 5 that,South Korea's Ministry of industry, commerce and resources has approved the sale of its LCD production line in Suzhou, China.
Suzhou Samsung LCD Technology Co., Ltd., founded in 2011, is a high generation LCD panel manufacturer. The company covers an area of 570000 square meters and is mainly engaged in the R & D, production and sales of high generation TFT-LCD panels. Its products include 8.5 generation TFT-LCD, and is committed to expanding the core production technology of LCD.
In this company, Samsung's Samsung display company accounts for 60%, Suzhou industrial state-owned investment holding Development Co., Ltd. accounts for 30% and TCL's Huaxing optoelectronics accounts for 10%.
On August 29, 2020, TCL announced that its holding subsidiary TCL Huaxing Optoelectronic Technology Co., Ltd. plans to sign the equity transfer agreement and capital increase agreement with Samsung display Co., Ltd., and TCL technology plans to sign the inter shareholder agreement with Samsung display.
After the signing of the agreement,TCL technology will acquire 60% equity of Suzhou Samsung Electronic LCD Technology Co., Ltd. and 100% equity of Suzhou Samsung display Co., Ltd. for a consideration of about US $1080 million (about RMB 7622 million).
Samsung display will increase the capital of TCL Huaxing by US $739 million (about RMB 5.213 billion) from the consideration of 60% equity of Suzhou Samsung Electronic LCD display. After the capital increase, Samsung display will take 12.33% equity of TCL Huaxing.
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