Asia Express - Display
Innolux to Acquire CMO via Share Swap
November 15, 2009
In a joint filing to the Taiwan Stock Exchange on November 14, Taiwanese flat-panel monitor maker Innolux Display, an affiliate of EMS (Electronic Manufacturing Service) provider Foxconn Group, said that it will acquire Taiwanese LCD (Liquid Crystal Display) panel maker CMO via share swap, Commercial Times of Taiwan reported. Innolux plans to exchange one share for every 2.05 CMO shares in a deal valued at approximately NT$172 billion (US$5.35 billion; US$1=NT$32.17). Following the merger, Innolux will be the surviving company, and the new entity is to be named Chimei Innolux Corporation. It is projected that the new company will surpass AUO as the largest LCD panel maker in Taiwan. The merger is slated to take effect on May 1, 2010.

The acquisition of CMO marks Innolux's second such endeavor in a short span of time. Earlier in October this year, Innolux acquired Toppoly Optoelectronics, a Taiwanese maker of small-size LCD panels for use in mobile phone, for US$654 million.