BOE Hydis Technology Co Ltd, an LCD panel manufacturer of Korea, designated Prime View Consortium, a syndicate of Taiwan and Hong Kong-based companies, as a priority negotiating partner and exchanged memorandums with the consortium.
The acquisition price is approximately 260 billion won (US$285 million). The formal contract will be signed in December.
Prime View Consortium is composed of Prime View International, an LCD panel manufacturer of Taiwan, ALCO Holdings, an AV equipment manufacturer of Hong Kong and Varitronix International, an LCD panel manufacturer of Hong Kong with a production base in China. The three companies will hold 78%, 11% and 11% respectively of the shares of the acquired company, BOE Hydis.
BOE Hydis was established in 1989 by Hyundai Electronics Industry Inc at that time as an LCD division. It separated from Hyundai Electronics in 2001, and became a subsidiary of BOE Technology Group Co Ltd of China in 2003. However, its business conditions were unfavorable and filed for protection under the bankruptcy law.
The amount of 156 billion won, roughly 60% of the acquisition price, will be spent for the paid capital increase and acquisition of the newly-issued shares. The remaining amount of 104 billion won, roughly 40%, will be spent to acquire the newly-issued company bonds.
According to BOE Hydis, when the acquisition procedures are completed, the company's financial condition will rapidly improve, allowing it to devise an effective supply system for small- to medium-sized LCD panels.
