HannStar Display To Sell Majority Of Nanjing Subsidiary To HK-listed Firm
HannStar Display, through its subsidiary Brightpro Resources, has signed a MoU (memorandum of understanding) with China Display Optoelectronics Technology for technology cooperation as well as the sale of a majority of share of its subsidiary in Nanjing to the Hong Kong-listed display company.
China Display Optoelectronics, a company under the TCL group, has announced that it intends to take up a 51-81% stake in HannStar Display Nanjing in order to expand its display business, particularly LCD modules and automobile displays.
HannStar Display Nanjing is a specialist for LCD touch panels, LCD modules (LCMs), notebook and tablet panels and also automobile display devices.
The Nanjing subsidiary is currently operating in the red and its sales currently account for less than 10% of the company's total revenues, according to sources at HannStar Display.
The possible sale of the Nanjing subsidiary to China Display Optoelectronic will help the company stem losses, and the deal will not affect its shipments of LCM products to China, HannStar said.
China Star Optoelectronics Technology (CSOT) is currently the largest shareholder of China Display Optoelectronics with a 53.81% stake.