Silicon Works Co., Ltd. entered into contract to acquire part of System IC business from LG Electronics Inc. for KRW 21.6 billion.
April 28, 2015 at 12:00 am EDT
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Silicon Works Co., Ltd. (KOSDAQ:A108320) entered into contract to acquire part of System IC business from LG Electronics Inc. (KOSE:A066570) for KRW 21.6 billion in cash on April 28, 2015. The deal includes all asset and manpower related to display chip design business. During the year ended December 31, 2014, System IC business had assets of KRW 19.7 billion, sales revenue of KRW 68.9 billion, and debts of KRW 10.9 billion.
There should be no litigation or preservative measure against the buyer and or seller to stop or disrupt the signing of this contract. Board of Directors of Silicon Works Co., Ltd. and LG Electronics Inc. made a resolution in favor of the transaction on April 28, 2015. The transaction is subject to approval from shareholders of Silicon Works Co., Ltd., Fair Trade Commission, and government authority. The shareholder definite record date is May 13, 2015. The scheduled date of general meeting of stockholders is June 10, 2015. The scheduled acquisition date is July 1, 2015. As of June 10, 2015, the shareholders of Silicon Works Co., Ltd. approved the transaction. Ernst & Young, Korea acted as of external evaluation Institutions.
LX Semicon Co Ltd, formerly Silicon Works Co Ltd is a Korea-based company mainly engaged in the development, manufacture and distribution of semiconductor products. The Company engages in the manufacture of driver ICs (D-ICs), timing controllers (T-Cons), power management ICs (PMICs) and others, which are used for liquid crystal displays (LCDs), plasma display panels (PDPs) and others. In addition, the Company produces and supplies products such as mobile-oriented plastic organic light-emitting diode (P-OLED) display drive chip (DDI), touch controllers, and others. The Company distributes its products within domestic market and to overseas markets.