On June 28th, the signing ceremony for the LCD polarizer project of Zhangjiagang Economic and Technological Development Zone, Shanshan Holdings and the global polarizer head company South Korea’s LG Chem was held. Zheng Yonggang, chairman of the board of Shanshan Holdings Co., Ltd., and South Korea’s LG Chem China polarizer Zhu Zhiyong, executive director of the umbrella, attended the signing ceremony.
According to the agreement, a joint venture of US$1.1 billion (approximately RMB 7.78 billion) will jointly build LCD polarizer headquarters, production base and R&D center projects. Settled in Zhangjiagang Economic Development Zone, it is planned to start the construction of headquarters and production base by the end of this year.
In the first phase, two 2.3-meter wide-format LCD polarizer production lines are planned to be built and put into operation before the end of next year, with an estimated annual sales of about 5 billion yuan and a tax of about 1 billion yuan;
The second phase plans to build a research and development center, an OLED polarizer production line, and upstream and downstream supporting materials. After the project is completed, the company's revenue will reach 15 billion yuan, making it the world's largest polarizer supplier.
It is reported that on June 9, Shanshan shares disclosed the asset acquisition plan and fixed increase plan. The company intends to acquire LG Chem's LCD polarizer business and related assets in mainland China, Taiwan and South Korea at a price of USD 770 million (equivalent to RMB 5.45 billion).
In terms of transaction methods, LG Chem will establish a holding company with cash investment in China, and then Shanshan shares will acquire 70% of the holding company in the form of capital increase, and LG Chem will hold the remaining 30% of the company. The paid-in funds shall be used for the subject of acquisition and integration.