(Yicai Global) March 22 -- Shenzhen O-film Tech Co. [SHE:002456] plans to use TWD1.81 billion (USD60 million) of its own funds to buy a stake in TPK Holding Co. [TPE:3673], a leading touch solution provider based in Taiwan. The two companies will also set up a joint venture.
TPK plans to issue 20 million ordinary shares via private placement and O-film Tech plans to buy TWD1.81 billion worth of shares at TWD90.5 per share (its closing price yesterday), O-film Tech said in a statement yesterday. O-film Tech will acquire a 5.46 percent in TPK upon completion of the purchase.
The two companies will build a joint venture to provide integrated services covering the research and development, sales and manufacturing of touch and precision opto-electronic modules to offer all-round solutions for clients in areas ranging from product design to front-end and rear-end manufacturing, the statement said.
O-film Tech will take a 51 percent stake in the joint venture, while TPK will hold a 49 percent ownership.
O-film Tech and TPK have their respective advantages in technologies and innovations in the touch industry, the statement added, saying that their cooperation will produce synergy and complementarity in terms of business distribution and client structure, further increase the technical thresholds of their products and services in their respective industries, help improve their industry position and overall competitiveness in the industrial chains and achieve win-win outcomes.
TPK is a world-leading manufacturer of touch systems and specializes in manufacturing touch products made with full lamination process, the statement said. Its serves clients in Taiwan, Europe and the US.