Leyard Optoelectronic announced that the company is to launch private placement of 120 million shares to raise about RMB 1.98 billion (US $312 million). The company will utilize RMB 1 billion to obtain 100% of Planar’s share.

Planar, a renowned global leader in digital display, digital signage technology and high- end home theater service, has high market penetration worldwide especially in North America. Leyard’s acquisition of Planar will further enhance its position as professional display technology provider while expanding its target customers from traditional enterprise to high- end home theater applications. Meanwhile, Leyard realizes its goal as international corporation by building globalized operation platform through Planar’s global sales network and influential brand reputation.

Planar’s revenue from January to June 2013 reached RMB 10.15 billion with recorded net profit of RMB 47.7 million. Throughout the same period in 2014, the company realized revenue of RMB 1.2 billion, reflecting net profit at RMB 26.7 million while in 2015 the revenue plummeted to RMB 570 million, and net profit of RMB 5.19 million.

Leyard is to utilize RMB 480 million to set up a cultural investment company. Meanwhile, the company will use RMB 42 million to expand its LED plant, while RMB 23 million will be used in the construction of international LED plants. Other applications of the raised fund include the construction of sales services network (US $6.8 million), R&D and innovation center (US $3.2 million) and liquidity usage (US $58.64 million).

(Translator: Emma Chang, Editor, LEDinside)