HannStar Display Corp (瀚宇彩晶), the nation's smallest flat-panel maker, said it has sold all of its holdings in brand operation Hannspree Inc, paving the way for a future overseas sale of Hanspree shares.
In a filing to the Taiwan Stock Exchange late on Thursday, HannStar said it had transferred around 182.98 million common shares, or 29.04 percent, of Hannspree to its wholly-owned overseas unit Hannspree (Cayman) for NT$1.28 billion (US$39.2 million).
Using the proceeds, Hannspirit (BVI) Holding Ltd, a wholly-owned holding company of HannStar, will enter a share swap with HannSpree (Cayman) to acquire these common shares, according to the filing.
"The move aims to facilitate overseas sale of Hannspree shares," the filing stated, without giving any further details.
Hannspree, established in July of 2002 with registered capital of NT$5.6 billion, sells upscale brand-name liquid-crystal-display (LCD) monitors and televisions with innovative designs. But the company has suffered heavy losses since its establishment.
HannStar declined to reveal the losses incurred by Hannspree.
Early this month, HannStar posted widening quarterly losses of NT$2.68 billion for the second quarter from a NT$125 million loss in the first quarter citing overcapacity-driven price declines.