Household Appliance News
- China's TV maker acquires hefty foreign stake
Date: 15-Dec-2006 Sources: (Xinhua Online)
China's leading TV maker Changhong acquired 75 percent of the Republic of Korea's third largest plasma display panel (PDP) producer, according to the National Development and Reform Commission Tuesday.
The Sichuan Century Shuanghong, a joint venture between Changhong and the biggest Chinese colour TV tube maker Irico Group, is paying 99.9 million U.S. dollars to acquire 75 percent of the Sterope Investments B.V in the Netherlands which is the majority shareholder of the Orion PDP Co. Ltd in the Republic of Korea.
Analysts said the takeover of Orion will allow Changhong to enter into the upper level of the production value chain.
The annual output of the new assembly line is projected to hit two million panels, which is equivalent to the world's number five producer, Pioneer in Japan.
Hefty funds were injected into the joint venture in October where Changhong takes up 80 percent of the stake and 20 percent for Irico, which added its registration capital to 180 million yuan and quenched market doubts on its financial capacity of digesting the foreign counterpart.
Analysts show prudent optimism over the buyout, saying it will help Changhong to complete its flat panel production chain, while the competition will remain fierce with falling prices.
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