News & Events
China's Nanjing Huadong Electronics Information and Technology has disclosed that it is looking for potential buyers of its stakes in two LCD fabs belonging to its subsidiary CEC-Panda LCD Technology aiming to improve its financial strength.
Huadong said that it holds a 57.646% stake in CEC-Panda's 8.5G line in Nanjing and also a certain stake in the panel maker's 8.6G line in Chengdu and that it is willing to sell all or part of its holdings in the two fabs.
Huadong said that its holdings in two LCD lines have resulted in significant losses over the years. Huadong's net losses widened to CNY5.641 billion in 2019 from CNY987 million a year earlier.
China's top-two panel makers BOE Technology and TCL, the parent company of China Star Optoelectronics Technology (CSOT), reportedly have respectively talked to Huadong about taking up control of CEC-Panda through the purchases of its shares, according to industry observers.
A deal is expected to conclude soon with TCL likely to emerge as the winner to acquire CEC-Panda shares from Huadong as the company reportedly has offered a higher price than BOE's, said the observers.
A successful acquisition of CEC-Panda's 8.5G and 8.6G lines by will help boost TCL's LCD capacity significantly, enhancing its competition with BOE to become the world's top vendor, noted the observes.