HannStar Display Corp (
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 (奇美電子) investment in monitor maker TPV Technology Ltd (冠捷科技) 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 (
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.
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 (
"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 (華新麗華) and memory chipmaker Winbond Electronics Corp (華邦電) are the two largest shareholders in HannStar.
The transaction is expected to be completed in February, the company said.
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