Chunghwa Picture Tubes Ltd (CPT, 中華映管), a LCD panel maker, yesterday said it has agreed to sell a 35 percent share of its local subsidiary to Japan’s Ortus Technology Co Ltd for NT$2.54 billion (US$79.56 million) in a bid to boost investor’s returns on equity.
CPT owns a 53.67 percent stake in Giantplus Technology Co Ltd (凌巨), which makes small and medium-sized flat panels and touch panels used in cars, industrial devices and mobile phones.
The Taoyuan-based CPT said in a statement that it plans to sell 152.98 million Giantplus shares to Ortus at NT$16.57 per share.
CPT also plans to sell its remaining 19 percent stake in Giantplus at between NT$14.45 and NT$21.49 per share on the open market, the company said.
Ortus, a subsidiary of Japanese semiconductor photomask maker Toppan Printing Co Ltd, is interested in buying the shares on the open market, a CPT official said by telephone.
Giantplus supplies LCD panels for industrial devices to Ortus.
“The combination of Giantplus and Ortus will help Giantplus get high-end technologies and broaden its customer base, as well as better utilize a newly-acquired fourth-generation plant,” CPT said in the statement.
CPT expects to finalize the transaction by March. The deal is to reduce CPT’s revenue by about NT$1 billion a month, the official said.
The deal is still subject to approval from the Investment Commission.
Following the share sales, which CPT is expected to earn NT$3.7 billion, the company said it would focus on producing high-margin panels for cars, industrial devices, smartphones and tablets.
The company operates two 4.5-generation plants and one 6-generation plant in Taiwan, while it is building a new 6G plant in China’s Fuijian Province.
The Chinese plant is to start operation in July next year.
During the first three quarters of this year, CPT lost NT$2.46 billion and the chronicle losses have driven down the company’s book value to NT$1.43 per share as of the end of September.
CPT shares traded at at NT$1.37 yesterday, less than its book value.
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