(Yicai Global) Dec. 17 -- A Chinese consortium led by touch panel maker O-film Tech is planning to acquire a stake in Japan Display, a screen supplier to Apple.

O-film Tech has negotiated with Japan Display but no agreement has yet been reached, the Shenzhen-based company said in a statement today. The consortium is considering to establish a plant in China to use the Tokyo-based firm's technologies to manufacture organic light-emitting diode panels.

Japan Display is negotiating with the consortium comprising various Chinese companies and funds to sell a 33 percent stake for about JPY50 billion (USD400 million), Japanese NHK World TV channel reported earlier.

Japan Display has already been in talks with major Chinese display makers including BOE Technology Group, Shenzhen China Star Optoelectronics Technology, Tianma Microelectronics and Hon Hai Precision Industry in the past years but the negotiations have been unsuccessful due to the Japanese company's complex equity structure, Li Yaqin, Chinese consultancy Sigmaintell's general manager, said to Yicai Global in an interview. 

Japan Display has borne the brunt of Californian iPhone maker's sluggish sales of its latest models, as well as heating competition in Asia as Chinese phonemakers have increasingly preferred to buy South Korean Samsung's or Chinese companies' components. 

Even if the deal would be successful, O-film Tech may encounter many difficulties and challenges due to the lower operating efficiency and slower technical response of Japanese factories, Li said. 

O-film Tech's operating revenue increased over 27 percent to CNY31.1 billion (USD4.5 billion) over the first three quarters this year. Net profits rose almost 35 percent to CNY1.4 billion.

A Nanchang-based unit of O-film Tech acquired Fujifilm Holdings' Chinese subsidiary Fujifilm Optoelectronics Tianjin for USD28 million in October to gain rights to the Japanese parent's optical patents.

Editor: Emmi Laine