Shanshan takes over LG Chem's LCD polarizer business, and the Korean government technology control restrictions have been eliminated

On August 18, the 'Science Innovation Board Daily' reported that after the resolution of the relevant departments of the South Korean government, LG Chem’s polarizer production technology does not involve national security and industrial security, and does not involve non-saleable technologies. This means that Shanshan's acquisition of LG Chemical's polarizer business has removed the government's technical control restrictions.

On June 9 this year, Shanshan shares issued a major asset purchase plan, saying that it plans to acquire South Korea’s LG Chem’s LCD polarizer business and related assets in China, Taiwan, and South Korea for US$770 million. 70% equity.

In this acquisition of nearly 5.5 billion yuan, Shanshan shares will solve most of the acquisition funds by means of fixed increase. Among them, the listed company's controlling shareholder Shanshan Group and indirect controlling shareholder Shanshan Holdings will subscribe for Shanshan shares by a fixed increase of 3.136 billion yuan through direct or indirect participation of its subsidiaries, accounting for 57% of the transaction amount.

Polarizer is one of the core materials of the panel. At present, my country has become the world's largest and fastest-growing LCD market. With the rapid development of the downstream panel industry, the demand for polarizers is also steadily increasing.

According to WitsView forecast data, by 2020, China's LCD TV panel shipments will account for 58%. Assuming that my country's LCD panel is under construction and the production line is fully loaded, the total required polarizer area is 438 million square meters. According to IHS data, my country's polarizer production capacity in 2020 is only 207 million square meters, and the supply and demand gap is 231 million square meters .