News Column

Tianma to Acquire CNY5.5bn Assets via Share Issuance

May 9, 2014

SHENZHEN, May 9, SinoCast -- Shenzhen Tianma Micro-electronics Co., Ltd. (SZSE: 000050) intended to acquire 70% of Shanghai Tianma, 40% of Chengdu Tianma, 90% of Wuhan Tianma, 100% of Shanghai Optoelectronics and 100% of Shenzhen Optoelectronics through issuing shares to nine counterparties and meanwhile will raise not more than 25% of the trading value through non-pubic share issuance.

The target assets were estimated to value at CNY 5.496 billion.

The acquirer targeted at small- and medium-size LCD market. In 2013, the target companies' QHD smart-phone LCD products captured the largest and third largest market share in the Chinese and global market, respectively; the buyer and the target companies ranked the fourth in the world by t small- and medium-size LCD modules; Shenzhen Optoelectronics' wholly-owned subsidiary NLT captured about 30% of the global medium- and high-end medical and industrial-control display market.

In the automobile market, the acquirer and the target companies mainly serve the OE market, with rich customer resources, and sold products to auto makers through Continental and other first-tier suppliers; in the display and other fields, their end-customers also include Philips, Siemens, Mindray , Honeywell, BOSCH, CISCO, AVAYA and Nest.

After the reorganization, the listed company's total and net assets will reach CNY 16.995 billion and CNY 6.058 billion, helping the company to squeeze into the world's forefront by total assets size.

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Source: Sinocast Computers & Electronics Beat (China)