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Regarding the joint venture LCD panel fab in China

26th Apr 2011 07:00

RNS Number : 4077F
Samsung Electronics Co. Ld
22 April 2011
 



 

Regarding the joint venture LCD panel fab in China

 

This disclosure is related to the joint venture LCD panel fab in China (Samsung Suzhou LCD Co., LTD (SSL)). There have been some revisions in the ownership structure and Samsung Electronics' (SEC) investment amount.

 

Related disclosure: '7.5G LCD Line Investment in China' (October 16, 2009) and 'Response to Disclosure Inquiry' (August 28, 2009).

 

 Details on the joint venture are as follows:

- Total investment: USD 3 billion / capital expenditure of KRW2.6 trillion. (Unchanged)

- Equity capital: USD 1 billion (Unchanged)

- Counterparties of the joint venture and ownership structure

Previous;

SEC: Samsung China: the Suzhou Industrial Park = 8:1:1,

Revised;

SEC: Samsung China: the Suzhou Industrial Park: TCL = 5:1:3:1

* In accordance with the changes made to the ownership structure, total investment

amount by SEC will change from USD 0.8 billion to USD 0.5 billion

 Strategic significance of the revised ownership structure

- Samsung expects its strategic cooperation with TCL, which is China's leading

LCD TV maker, will strengthen its competitiveness in China

 Plan to further strengthen strategic partnership with TCL

 - In addition to the aforementioned investment, Samsung Electronics plans to

acquire a stake (15%, approximately USD 230 million) in CSOT, a LCD panel

joint venture established between TCL and the Shenzhen municipal government

in China.

 

The joint venture will be established after receiving the Chinese government's final

approval in around May 2011 regarding the changes made to the joint venture

contract.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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