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HannStar says 'yes' to LG.Philips
STRATEGIC ALLIANCE:
HannStar's board approved the sale of 180 million shares yesterday at NT$17.61 per share to the world's second-largest large-sized panel maker
By Lisa Wang
STAFF REPORTER
Tuesday, Dec 18, 2007, Page 12
HannStar Display Corp (胿眒垂), the nation's fourth-largest liquid-crystal-display (LCD) panel maker, yesterday said it would raise NT$3.17 billion (US$97.6 million) by selling 180 million shares to South Korean LG.Philips LCD Co (LPL) to secure panel supply in anticipation of supply constraints next year.
The deal marked the latest strategic alliance in the LCD industry in a bid to cope with the fast-changing industry. Previous deals include Chi Mei Optoelectronics Corp's (筿) investment in monitor maker TPV Technology Ltd (玜倍м) in September.
HannStar's board yesterday approved the sale of the shares to LPL -- the world's second largest large-sized panel maker, at NT$17.61 per share via a private placement, representing a 39 percent premium on HannStar's closing price of NT$12.7 yesterday.
"The strategic partnership aims to cope with strong demand next year as we agreed to sell panels to each other, or may be exchange factory capacity," said HannStar spokesman Chou Chin-hao (㏄в花) by telephone.
HannStar planned to increase orders of television LCD panels from LPL primarily for its own brand TVs, while LPL will buy more PC monitor panels from the local firm, Chou said.
The deal would help HannStar "broaden our product portfolio as well as expand our customer base to the TV segment," Chou said.
The deal also marks the first cross-border alliance between a local panel maker and an international counterpart.
No details about additional panel purchases were finalized yet, Chou said.
'FIRST STEP'
HannStar now operates one fifth-generation (5G) plant making LCD panels for computer monitors after selling two less advanced plants to local handset panel maker Wintek Corp (秤地).
"This is the first step and we do not rule out the possibility of deeper cooperation in the future," Chou said.
After the share sale, LPL would own a 3.42 percent stake in HannStar, making it the third-largest shareholder in the Taiwanese panel manufacturer which is based in Taoyuan.
Local cable maker Walsin Lihwa Corp (地穝腞地) and memory chipmaker Winbond Electronics Corp (地ü筿) are the two largest shareholders in HannStar.
The transaction is expected to be completed in February, the company said.
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