SVA Electron (600602) made an announcement that the Board of the company had passed a resolution to reissue shares to its major shareholder SVA for the acquisition of 62.5% holdings of SVA Optronics that SVA held and acquire in cash 18.75% holdings of SVA Optronics that its Brother company SVA Information (600637) Held. When the acquisition is completed, SVA Optronics will become a wholly-owned subsidiary of SVA Electron and all the TFT-LCD Gen 5 will enter SVA Electron.
After the completion of reissuing, SVA’s holdings of SVA Electron will be lifted from the current 30.07% to 42.97%. SVA Optronics will reverse its losses in 08 with net profit expected to be over 200 million yuan. When all TFT assets are injected to SVA Electron, it will greatly enhance its performance in 08.