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.