Samsung Corning, the world“s third largest producer of picture tube glass used in PCs and TVs, is in talks to acquire shares in Shenzhen-listed Seg Samsung, part of the Shenzhen Seg Group. The compan…
Samsung Corning, the world“s third largest producer of picture tube glass used in PCs and TVs, is in talks to acquire shares in Shenzhen-listed Seg Samsung, part of the Shenzhen Seg Group. The company aims to raise its stake in Seg Samsung to 49.86% through the acquisition, and further to 70% when the Chinese policy allows. Samsung Corning currently owns a 21.37% stake in Seg Samsung while Seg Group and its majority-owned Seg Corp. own a combined stake of 49.86%. This move is part of Samsung Corning“s restructuring plan for its global production centres, currently seven, located in South Korea, Malaysia, Mexico, Germany and China. It plans to move some of its overseas production lines to Seg Samsung after the share acquisition. In addition, it also intends to shift its headquarters to China from South Korea, reported Guoji Jinrong Bao. A major obstacle in the share acquisition is the two large outstanding payments owed to Seg Samsung. The Shenzhen Seg Group currently owes them CNY 141 million; while the Seg Group“s affiliated firm Shenzhen Seg Industrial Corp. owes them CNY 599 million. Samsung Corning said they will not complete the share acquisition until the payment problem is solved. Seg Samsung“s net profit plunged by 69.44% year-on-year to CNY 25.9 million in the first quarter of 2002.