Related News

Home » Business » IT

Losing LCD business seals stake deals

SHANGHAI Yidian Holding (Group) Co plans to spend 2.2 billion yuan (US$323 million) to acquire SVA Group's stakes in two locally-listed subsidiaries - a move to restructure debt-laden SVA due to huge losses in its liquid crystal display panel business, the listed firms said yesterday.

The acquisition marked the latest move in the Chinese LCD market, which has been hit by waning demand and an economic slowdown. SVA Group is the No. 2 LCD panel maker in the Chinese mainland.

Under the agreement, SVA Group will sell all its shares, or 30.07 percent, in SVA Electron to Yidian for 1.11 billion yuan or 3.15 yuan per share.

Yidian will also acquire the 42.24 percent stake SVA Group owns in SVA Information Industry Co for 1.08 billion yuan, or 3.59 yuan per share.

After the transaction, which still needs approval from the regulator, Yidian will become the controlling shareholder of the two firms, according to statements to the Shanghai Stock Exchange by SVA Electron and SVA Information.

"We will gain from the deal because it will improve the company's operations and leverage debt," they said.

Trading of the two firms were halted in Shanghai since April 15 pending the result of the SVA Group's restructuring, but resumed yesterday.

SVA Electron jumped by the 10 percent daily cap to 4.19 yuan while SVA Information surged 10 percent to 4.53 yuan yesterday.

The local stock index rose 0.52 percent yesterday.

The two firms have lost a combined 1.8 billion yuan, their biggest loss since they were founded.

Under the pact, the two companies will also sell all stakes in SVA Optronics to the SVA Group.



Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend