Overview of supply and cooperation between panel factory and LED plant

Donbei photoelectric board will start by 2 billion 234 million yuan fund-raising eucalyptus, the market spread, South Korea's LG group are interested in participating, while LG group in light emitting diode (LED) business LGIT also intends to increase the East Bay possible investment, cross shareholding. LG and Taiwan factory by allied forces against samsung.

East Bay is the largest supplier of LED TV backlight independent plant, Samsung is an important partner in the future will be "left over Samsung, right LG, expand the global layout.

East Bay Company is reluctant to disclose the introduction of convertible bonds strategic partner object, stressed that the company will take this to strengthen the global layout, and stimulate the cooperation with the end of the application side of the synergy.

The East Bay by the board of directors, will handle cash capital increase and the issuance of Switching Company debt (ECB) prospectus, a total of 2 billion 234 million yuan, of which 1 billion 500 million yuan ECB shares will have strategic partners; will also handle cash capital increase, tentative 48.9 yuan per share, raised 734 million yuan. East fell 0.65 yuan yesterday, to close at $49.55, is now increasing the temporary price discount of less than 2%.

East Bay spokesman Weng Congzhi said that the capital increase will be subscribed by the original shareholders by the shareholding ratio; part of the convertible bonds, the introduction of strategic partners will subscribe.

South Korea's LG group to seek partners in Taiwan's positive attitude, had invested in canyuan, and strategic alliance with light and Ruixuan billion. It is understood that the LG group's LGD, has been with the East Bay joint venture factory in mainland China canyuan photoelectric lucidity photoelectric, LED epitaxy, grain size, packaging business days before LG's LGIT company to increase, to come to Taiwan for investment partners, has spread with the East Bay sign confidentiality agreement (NDA). Prepare for the two companies.

East Bay is the downstream packaging plant in the domestic LED, the first cut into the LED TV backlight source, and through the transfer of investment in South Korea packaging plant Lumens Samsung LED TV supply chain.

In the past the East Bay in order to avoid offending customers Samsung, stay away from LG, but Samsung delayed shipment, East Bay as expected July revenue jumped 800 million yuan, causing the market down, five consecutive trading days three corporate selling more than 15 thousand copies, short-term stock price decline of nearly 16%.

It is understood that, due to the east of the new LG TV LED orders have begun to ship, the proportion of Samsung's revenue in the future is expected to reduce. East Bay has the possibility in the evaluation of LGIT investment; LG group also shares, and canyuan billion light strategic alliance, may purchase the East Bay's Switching Company debt; at the same time, a number of downstream plants to participate in the subscription.

Weng Congzhi said, the East Bay stand backlight market leader position, again an ample supply of silver bullet, the development strategy of double backlight and lighting the attacking force. All of the backlight market over 100 times the general lighting applications market.