Asia Express - Display
Tianma Microelectronics Gains Control of SVA NEC's 5G LCD Panel Line
November 20, 2009
Acting through the company's controller CATIC (China National Aero-Technology Import & Export Corporation) Shenzhen, China's Shenzhen Tianma Microelectronics has been put in charge of Shanghai SVA NEC Liquid Crystal Display's 5G LCD (Liquid Crystal Display) panel production line, Chinese-language Sina News reported on November 19. In a filing to the Shenzhen Stock Exchange, Shenzhen Tianma said that its controller CATIC Shenzhen bought the 5G LCD line from SVA NEC for 2.5 billion RMB (US$366.03 million; US$1=6.83 RMB). In order to ward off intra-industry competition, the assets will be transferred to Shenzhen Tianma.

In the same filing, Shenzhen Tianma also said that it plans to issue up to 156 million shares at a rate of 5.34 RMB (US$0.78) per share to CATIC Shenzhen, Shanghai Zhangjiang Group, Shanghai State-owned Assets Operation, and Shanghai Industrial Investment, in exchange of the respective companies' shares in Shanghai Tianma Microelectronics. Following the transaction, Shanghai Tianma, which currently operates a 4.5G LCD production line, will become a wholly-owned business unit of Shenzhen Tianma.