Jia Yuan Law Offices advises TCL Technology on a proposed RMB11.56 billion (USD1.6 billion) acquisition of an equity stake in Shenzhen China Star Optoelectronics Semiconductor held by a major industrial development fund.
Partners Xu Ying, Wen Liangjuan, Liu Xing, Wu Junchao and Chen Yingzhan led the Jia Yuan advisory team on the transaction that recently received approval from the Shenzhen Stock Exchange.
Under the transaction terms, TCL Technology will acquire a 21.53% equity stake in China Star Optoelectronics from the Shenzhen Major Industrial Development Phase I Fund through a combination of a share issuance and cash payment. On completion, TCL Technology will increase its ownership in China Star Optoelectronics to 84.2%.
Of the total consideration, RMB7.2 billion will be paid in cash, while the remaining RMB4.36 billion will be settled through the issuance of shares by TCL Technology.
The transaction remains subject to final approval by the China Securities Regulatory Commission.
China Star Optoelectronics, originally established as a joint venture between TCL and Century Science & Technology, a Shenzhen state-owned enterprise, has seen TCL gradually increase its controlling stake through a series of acquisitions and capital infusions.
As a leading giant in the semiconductor display industry, TCL Technology has been actively pursuing industrial integration in recent years. This acquisition marks the company’s second RMB10 billion-level transaction in the past nine months. In September 2024, TCL acquired an 80% equity stake in LG Display’s Guangzhou LCD panel factory and 100% equity in its module factory for RMB10.8 billion.
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