Nov. 27, 2001 – Seoul, South Korea – Hynix Semiconductor has signed a contract to transfer its STN-LCD operation to a joint consortium made up of China’s Beijing Orient Electronics Group Co. Ltd. and Semicon Engineering Co. in Korea for roughly 65 billion won (approximately US$51.7 million), the Maeil Business newspaper reported.
The deal follows the signing of a memorandum of understanding in recent months.
Under the acquisition plans, a new company, Hyundai LCD, will be established to take over Hynix’s STN-LCD unit.
Beijing Orient Electronics Group will hold a 45% equity in the new company, with Semicon Engineering having 35% and Hynix 15%, while the employees of the STN-LCD operation will hold the remaining 5 percent.
The LCD unit expects sales of 50 billion won this year.