Chi Mei Optoelectronics Corp. (“CMO”) (TAIEX:3009) and Innolux Display Corp. ("Innolux") (TAIEX: 3481) have today held their board meetings, respectively, to approve the merger of the two companies through 100% of the exchange of their common shares. Subject to the completion of all legal procedures, both companies have agreed that each 2.05 shares of CMO common share will be exchanged into 1 of Innolux common share. The new company following the merger will be re-named as Chimei Innolux Corporation (“Chimei Innolux”)
CMO Chairman Frank Liao expressed his optimism about the merger. CMO has the fourth largest panel capacity in the world and offers complete range of flat display products and state-of-the-art technology. Innolux, on the other hand, excels in its integration of system assembly and superior clients exposures in the display industry. The combination of the two companies would create significant synergies in integrated supply chain management, streamlined operation, great economy of scale, and complementary customer base.
Innolux Chairman Dr. H.C. Tuan also envisioned the newly formed entity, Chimei Innolux, would contrive to re-engineer the respective resources it inherits from its original companies, demonstrate its competitiveness in all aspects and soon emerge as the new industry leader with full fledged products and services provided to its broad-based customers around the globe, hence rendering the best value proposition to its shareholders.
The combination also materializes the collaboration between Chimei Group and Foxconn Group, two of the most influential conglomerates from Taiwan, and paves the way for more business rationalization and development.