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.