Nanjing Huadong Electronics Information & Technology Co., Ltd. (SZSE:000727) entered into a term sheet to acquire 51% stake in TPV Technology Limited from CEIEC (H.K.) Limited and Innolux Corporation (TSEC:3481) for CNY 76.5 billion on September 4, 2020. As per terms, CEIEC (H.K.) Limited will sell 1.1 billion shares representing 47.15% stake and Innolux Corporation will sell 90.3 million shares representing 3.85% stake in TPV Technology Limited. The consideration will be paid in phases. Within 30 working days from the date when the 51% equity of TPV Technology is delivered to the company and before December 31, 2020, Nanjing Huadong Electronics Information & Technology Co., Ltd will pay CEIEC a cash consideration of CNY 3.56 billion and will also pay Innolux cash consideration CNY 290.64 million. In phase 2, before December 31, 2021, Nanjing Huadong Electronics Information & Technology Co., Ltd will pay CEIEC a cash consideration of CNY 1.3 billion and a cash consideration of CNY 287 million to Innolux. Before May 31, 2023, Nanjing Huadong Electronics Information & Technology Co., Ltd will pay CEIEC the remaining cash consideration of CNY 2.2 billion.

The transaction is subject to approval from the shareholders of Nanjing Huadong Electronics Information & Technology, signing of a conditional agreement with counterparty, necessary statutory approvals from the relevant authorities including the competent state-owned assets management department, The State Administration of Foreign Exchange, The National Development and Reform Commission and the Ministry of Commerce. The transaction is approved by the board of directors of Nanjing Huadong Electronics Information & Technology Co., Ltd. at the extraordinary board meeting. The transaction has been approved by the Ministry of Commerce regarding overseas investment projects and also approved by China Electronics Corporation. The anti-monopoly Bureau of the State Administration for Market Regulation passed the anti-monopoly review and approval of the concentration of business. CITIC Securities South China Company Limited acted as financial advisor to Nanjing Huadong Electronics Information & Technology Co., Ltd.

Nanjing Huadong Electronics Information & Technology Co., Ltd. (SZSE:000727) completed the acquisition of 51% stake in TPV Technology Limited from CEIEC (H.K.) Limited and Innolux Corporation (TSEC:3481) on December 30, 2020. Nanjing Huadong Electronics Information & Technology signed an agreement with CEIEC (H.K.) Limited and Innolux Corporation on December 30, 2020. Nanjing Huadong Electronics Information & Technology paid the first phase amounts of CNY 3.56 billion and CNY 290.64 million in full. Nanjing Huadong Electronics Information & Technology appointed 5 directors to TPV Technology Limited. The preconditions for the transaction have been fulfilled.