Sichuan-based home appliance manufacturer Changhong plans to indirectly acquire South Korean Orion and start constructing the first domestically invested plasma monitor production line in China.
According to a resolution passed by Changhong's board of directors, Changhong will raise about CNY2.5 billion to acquire 75% of the stake of Sterope Investments, sole shareholder of the South Korean plasma monitor manufacturer Orion. Sichuan Shijie Shuanghong Monitor Company currently holds that stake in Sterope and will sell to Changhong. Changhong does so in order to include its plasma technology into the listed company.
Changhong said that its plan of constructing China's first plasma screen line has been approved by China's State Development and Reform Commission, but the issuance of shares for raising the funds still needs to be voted on by the shareholders.