TPV Technology, the world's largest personal computer monitor maker, will sell a 7.68 per cent stake to Chi Mei Optoelectronics, the Taiwan thin-film transistor (TFT) maker, for HK$811.2 million.
Chi Mei will buy 150.5 million TPV new shares at HK$5.39 each, representing a 7.8 per cent premium to the closing price of HK$5 on Tuesday. Shares of TPV were suspended from trading yesterday.
'With the support from Chi Mei, TPV will have more certainty in panel supply and can stay focused on its core competence of system integration and mass production,' TPV chairman Jason Hsuan said. 'We will explore co-operation with Chi Mei to maximise shareholder values.'
TPV said the tie-up would give it a sustainable long-term supply of TFTs, a key component for making monitors, and Chi Mei a stable outlet for its panel output.
'We are confident in the growth potential of TPV and will keep reaping long-term benefit from this alliance as a shareholder,' said Chin Siang-liao, the chairman of Chi Mei.
TPV said it would expand its factory in Ningbo to improve operational efficiency because Chi Mei had already established its production site there.