Asia Express - Display
Hitachi to Transfer Stake in IPS Alpha Technology to Panasonic
July 02, 2010
Hitachi announced on June 30, 2010 that the company plans to sell most of its stake in a joint venture IPS Alpha Technology to Panasonic, according to Reuters. IPS Alpha Technology is a Hitachi-Panasonic joint venture company which designs, manufactures and sells large-size LCD (Liquid Crystal Display) TV panels. As per the transfer plan, it is expected that Hitachi will transfer its 50.02% stake in IPS Alpha Technology to IPS Alpha Support, a company established by Hitachi's subsidiary, Hitachi Display. IPS Alpha Support will then transfer 94% of the stake to Panasonic and the remaining 6% to Hitachi. As a result of the transaction, Panasonic will acquire an additional 47.02% stake in IPS Alpha Technology. Combined with its existing 49.98% stake, Panasonic will therefore have a 92% stake overall in the joint venture. The stake transfer is valued at around US$717 million, according to the same source.