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CSOT displays new strategic investor for panel project
Posted on Monday, 06 August 2018 12:25
Guangdong’s provincial government is becoming a strategic investor in the entity overseeing the construction of Shenzhen China Star Optoelectronics Technology’s (CSOT’s) second 11th generation ultra-high-definition liquid crystal display (LCD) panel production line. Established in 2016, Shenzhen China Star Optoelectronics Semiconductor Display Technology is setting up a fabrication plant in China aimed at eventually fully integrating the television manufacturing process. It started working on the project in May 2017, with the first part of the site expected to commence mass production in March 2019 with a design capacity of 90,000 sheets of substrate glass per month. In May this year, CSOT announced plans to establish a second production line at this facility, which would be dedicated to 65-inch, 70-inch and 75-inch high-definition displays, by 2021. At the moment, the LCD panel manufacturer is the majority shareholder of Shenzhen China Star with a 53.0 per cent stake, followed by Shenzhen’s municipal government (37.2 per cent) and Samsung Display (9.8 per cent). CSOT is planning to bring in Guangdong’s provincial government as a strategic investor in the facility through a two-step deal, each part of which is worth CNY 11.40 billion (USD 1.67 billion). Not only will the introduction of Guangdong Yuecai Investment accelerate construction of the second production line, but the additional financial support ought to help keep down the asset-liability ratio. The two will form Guangdong China Star Photoelectric Industry Equity Investment as a joint venture entity with a registered capital of CNY 11.40 billion. Guangdong Yuecai will provide CNY 2.00 billion in return for a 17.5 per cent stake, with the partner contributing the bulk of the investment, some CNY 9.40 billion. Next, CSOT will transfer its entire 53.0 per cent interest in Shenzhen China to Guangdong China Star, also for CNY 11.40 billion. © Zephus Ltd