Boe Technology Group Co. Ltd is to purchase 50% of the equities of Beijing Asani Glass Electronics Co. Ltd (BAE), a Sino-Japanese joint venture. Following the transaction, Boe Technology will hold 100…
Boe Technology Group Co. Ltd is to purchase 50% of the equities of Beijing Asani Glass Electronics Co. Ltd (BAE), a Sino-Japanese joint venture. Following the transaction, Boe Technology will hold 100% of the stock rights of BAE. It is expected that the purchase may produce about CNY 24 million (USD 3.48 million) in investment return. Boe Technology previously held 50% of the shares of BAE while the remaining shares were held by three Japanese shareholders. On 10 June 2008, Boe Technology signed contracts with the three Japanese shareholders of BAE, Asahi Glass Company, Marubeni Co. Ltd and Kyoei Shoji Co. Ltd to purchase 25%, 20% and 5% of the shares of BAE, at US dollar equivalent of CNY 25, CNY 20 and CNY 5 per share. BAE mainly develops and produces TV supports, glass bars and CTV low-welding-point filler metal glass. Its total audited assets in 2007 were CNY 117.84 million while net assets were CNY 95.64 million. Operating revenue was CNY 80.88 million in 2007. For strategic reasons, Japanese shareholders of BAE began to withdraw from the CRT industry starting from the latter half of 2007, hoping to sell all BAE shares they hold to Boe Technology. Boe Technology maintains that although the CRT industry has diminished worldwide, CRT products are still competitive in the rural market in China and in some developing countries, and may still enjoy remarkable market share in the next few years.