Huaying Technology Reorganizes Anecdote to Continue Taiwanese Identity or Block Huaxing Optoelectronics

Since the suspension of trading, Huaying Technology has been reorganizing and rumored, and there have been many speculative versions in the market. TCL, Chi Mei, AUO and other acquirers are involved. There are also rumors that the company's restructuring or major shareholder CPT is to inject panel companies in Taiwan into listed companies.

Industry insiders told reporters that the restructuring of Huaying Technology is to divest non-performing assets to attract other companies to make acquisitions, and the possibility of major shareholders injecting assets is extremely low. Looking at the industry, TCL's Huaxing Optoelectronics is still the most suitable acquirer.

Since the listing of SST in the east, and the first share of Taiwanese capital, Huaying Technology has been performing poorly. Last year, the company had laid off more than 2,000 people in order to spend the winter. The company's performance in recent years mainly relies on connected transactions.

The industry said that since the backdoor SST Jidong, Huaying technology business has not been very smooth, and now the rumors to be acquired is not unexpected. The company is now reorganizing or in order to divest non-performing assets in order to sell a good price in the future.

Huaxing Optoelectronics and Huaying Technology have always cooperated, and the two companies can complement each other in terms of business. Huaxing Optoelectronics is the main manufacturer of large panels, and the 8.5-generation line is in full production this year. The parent company TCL has sought to develop small and medium-sized panel business in recent years, and the two business mergers are in line with TCL's development strategy. Geographically speaking, Huaxing Optoelectronics and Huaying Technology are also very close.

"The biggest difficulty of Huaxing Optoelectronics is the identity of Huaying Technology." According to industry insiders, as the company is a Taiwan-funded enterprise, Huaxing Optoelectronics has no choice but to make a wholly-owned acquisition. A-shares have not yet set a precedent for this acquisition, and Huaxing Optoelectronics will face uncertain risks in policy.

For the rumors of the acquisition of Chi Mei and AUO, industry insiders said that AUO's recent small and medium-sized panel business is not small, and this aspect is the main business of Huaying Technology; and Chi Mei has a higher status in the industry. There is a certain possibility. He also said that the biggest advantage of Chi Mei and AUO's acquisition may give a relatively high price, which is the situation of Huaying Technology's major shareholder Zhonghua Yingle.

In the case of injecting assets into major shareholders, the industry claims that this possibility is almost zero. Because the actual controller of Huaying Technology, Taiwan Datong Group has already clearly stated that it wants to withdraw from the panel business, CPT is unlikely to inject assets into mainland listed companies. “It’s the only solution to dress up Huaying Technology and sell it at a good price.”

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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