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Cheil Industries to Transform Itself into a Leading Supplier of AMOLED Materials

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Monday, August 12th, 2013
SEOUL, KOREA- The share price of Cheil Industries is on the rise on the news of its acquisition of Novaled AG, a German company specializing in OLED technologies and materials.At 9:01 am on August 12, Cheil Industries shares were traded at 87,400 won, up 2.58 percent from the previous day's 85,200 won.
 
The company had announced on the 9th that its board of directors approved a proposal to take over the German technology venture. Under terms of the deal, Cheil Industries will take a 50.1-percent stake, while Samsung Electronics and Samsung Venture Investment Corp. owning a 40- and 9.9-percent stake in Novaled, respectively.
 
Choi Ji-soo, analyst with Kyobo Securities, said, "The takeover of Novaled signals an important change that can bring up the AMOLED technology level of Samsung Electronics and dissipate market fears about Cheil Industries. On the back of Novaled's rich patent portfolio and technology excellence, Cheil Industries will be able to transform itself into a leading AMOLED materials producer from the status of a follower."

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