Philips takes charge on mobile display merger
As a result of the transaction Philips (Amsterdam, The Netherlands) is set to take a charge of approximately 70 million euro (about $82 million) in the fourth quarter of 2005.
The company, to be called TPO, will have Compal Electronics Inc. at 25.1 percent, Philips at 17.5 percent and UniPresident Enterprises Corp. with 3.5 percent, as principal shareholders.
TPO is intended to be a leading provider of displays for mobile applications. Toppoly has production capacity in Taiwan and China for advanced mobile display technologies, such as low temperature polysilicon (LTPS) and active matrix organic light emitting diodes (AMOLED).
Philips expects to contribute advanced technology in cooperation with Philips Research.
"By teaming up with MDS, we're strengthening our capabilities to providing the best service to our customers worldwide," said Ray Chen, the president and chief executive officer of Compal Electronics Inc. and chairman of Toppoly Optoelectronics Corp., in a statement.
The transaction is conditional upon regulatory approvals, and is expected to be completed in the first half of 2006.
- Peter Clarke
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