Approved by Korea for Samsung to sell Suzhou plant: TCL take over

While LCD panels have risen sharply in the past six months, and companies such as samsung and LG have postponed their withdrawal from LCD capacity, the direction of reducing LCD investment is certain. A few days ago, South Korea approved Samsung's decision to sell Suzhou panel factory, will be taken over by TCL's Huaxing Optoelectronics.

According to reports, Samsung Display said on February 5 that Korea's Ministry of Industry and Trade has approved the sale of LCD production lines in Suzhou, China.

Suzhou Samsung Electronic LCD Technology Co., Ltd. was founded in 2011, a high generation LCD panel manufacturer, covering an area of 570000 square meters, mainly engaged in high generation TFT-LCD panel R & D, production and sales, products including 8.5 generation TFT-LCD, and committed to expanding LCD core production technology.

Among them, Samsung's Samsung display company accounts for 60 shares, Suzhou Industrial State Investment holding Development Co., Ltd. accounts for 30 shares, and TCL's Huaxing Optoelectronics accounts for 10 shares.

On August 29,2020, TCL announced that its controlling subsidiary TCL Huaxing Optoelectronic Technology Co., Ltd. intends to sign the Equity transfer Agreement and the Capital increase Agreement with Samsung display Co., Ltd., and TCL Technology intends to sign the shareholders' Agreement with Samsung display.

After the signing of the agreement, TCL Technology will acquire a 60% stake in Suzhou Samsung Electronic LCD Technology Co., Ltd and a 100% stake in Suzhou Samsung display Co., Ltd for about $1.080 billion (7.622 billion RMB) consideration.

Samsung will increase its capital by $739 million (5.213 billion yuan) of a 60 percent stake in Suzhou's Samsung electronic liquid crystal display. Samsung will take a 12.33 percent stake in TCL Huaxing after the increase.