Case Study on Strategic Acquisition of CPT’s Third Generations TFT-LCD plant by Giantplus

• Main Authors: Lai, Hsin-Ker, 賴新格
• Other Authors: Hung, Chih-Young
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/97729446382368217583

碩士 === 國立交通大學 === 管理學院碩士在職專班科技管理組 === 98 === In November 2007, the small and medium size STN LCD manufacturer Giantplus who paid NT 6.5 billion to merge a third-generation TFT-LCD line of Chunghwa Picture Tubes Ltd. (hereinafter: CPT). At the same, PVI, one of the leading small to medium sized TFT-LCD panel players in Taiwan announced that it has entered into a binding memorandum of understanding (“MOU”) to acquire South Korean based BOE Hydis Technologies Co., Ltd. (“Hydis”) (“Transaction”). The PVI led Consortium will inject KRW260 billion (approximately US$285 million or NT$9.3 billion) to acquire an approximate 95% stake in Hydis subject to the relevant regulatory approvals. Both of them obtain the TFT production technology by the merger and acquisition way. It is just for the TFT-LCD will be the mainstream of light-sized panel in the future. And the more quickly into TFT mass production, the more quickly they can get rid of the other competitors to catch up. This study proposed by Ansoff model of business growth to discuss the following questions: 1. what plan does Giantplus choose the third generations of line CPT. 2, How does Giantplus choose CPT in the strategy? 3, what can we learn fromthis M&A case? In this study the industry and the target company would be described and analyzed first. Then start with the motivation, this study would be analyzed by some key factors of the cooperating ways, M&A process, and the target valuation. According to this analysis with combination of the pieces of the information, we can see the whole picture of this M&A case and know that the rationality of the decision that Giantplus made. Finally, besides inspecting the impact of this case on Taiwan’s small and medium size panel industry, we also hope that if there’s any enterprise which intends to merge in the future, this study would show the way how it could be done. Hold the key principles and revise the details to the industry and company characteristic a little more, the mistakes from the M&A could be reduced.