Compal Electronics, Inc. (hereinafter “Compal”; stock ticker: 2324) Board of Directors today resolved to approve the shares sale and purchase agreement of its joint venture company, LC Future Center (Hong Kong) Ltd. (hereinafter “LCFC”). Compal’s 100% owned subsidiary, Billion Sea Holdings Ltd. (hereinafter “BSH”) will sell its 49% LCFC stake to Hefei Zhi Ju Sheng Bao Equity Investment Co., Ltd., a company requested by Lenovo Group Ltd. (hereinafter “Lenovo Group”). The total consideration amount is USD 257,368,000 and will be all traded in cash. The transaction is expected to be completed no later than August 31, 2018.

 

LCFC is a joint venture company established by Lenovo Group and Compal in April 2012, among them, Compal has invested US$147,000,000 and held 49% of the LCFC shares. Pursuant to the joint venture agreement, Compal has the right to execute its put option of LCFC shares since October 1, 2017. This transaction selling price is determined in accordance with the joint venture agreement, and reference to the independent third party’s equity evaluation report. After considering the relevant taxes, Compal expects to recognize the investment disposal gains of around NTD 2,577 million in the 3Q/2018 financial reports.

 

"Compal’s investment in LCFC has completed its milestones. We are pleased to achieve the win-win results through joint efforts of both parties," indicated by Compal. "Lenovo Group has been a long-term partner and an important customer for Compal. After the sale of LCFC shares, we are still optimistically looking forward to the future business cooperation with Lenovo."

 

About Compal Electronics

Established in 1984, Compal has developed into an industry leader in the Notebook PCs and Smart Devices, with its sophisticated management team and strong R&D capabilities. Its high-quality 5C electronic products are highly recognized by the global customers. In 2018, it is ranked as the Top 6 manufacturer in Taiwan and ranked in Fortune 500 list globally. In recent years, Compal actively invested in innovation and new businesses solutions, such as smart home, smart medical and healthcare. Pls visit: www.compal.com

 

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