REG - Samsung Electronics - Regarding the joint venture LCD panel fab in China
Regarding the joint venture LCD panel fab in China
This disclosure is related to the joint venture LCD panel fab in China (Samsung Suzhou LCD Co., LTD
(SSL)). There have been some revisions in the ownership structure and Samsung Electronics' (SEC)
investment amount.
※ Related disclosure: '7.5G LCD Line Investment in China' (October 16, 2009) and 'Response to Disclosure
Inquiry' (August 28, 2009).
□ Details on the joint venture are as follows:
- Total investment: USD 3 billion / capital expenditure of KRW2.6 trillion. (Unchanged)
- Equity capital: USD 1 billion (Unchanged)
- Counterparties of the joint venture and ownership structure
Previous;
SEC: Samsung China: the Suzhou Industrial Park = 8:1:1,
Revised;
SEC: Samsung China: the Suzhou Industrial Park: TCL = 5:1:3:1
* In accordance with the changes made to the ownership structure, total investment
amount by SEC will change from USD 0.8 billion to USD 0.5 billion
□ Strategic significance of the revised ownership structure
- Samsung expects its strategic cooperation with TCL, which is China's leading
LCD TV maker, will strengthen its competitiveness in China
□ Plan to further strengthen strategic partnership with TCL
- In addition to the aforementioned investment, Samsung Electronics plans to
acquire a stake (15%, approximately USD 230 million) in CSOT, a LCD panel
joint venture established between TCL and the Shenzhen municipal government
in China.
※ The joint venture will be established after receiving the Chinese government's final
approval in around May 2011 regarding the changes made to the joint venture
contract.
This information is provided by RNS
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