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BOE To Finance CNY2.2 Billion For TFT-LCD 4.5G Lines

BOE Technology Group, a company listed in the Shenzhen Stock Exchange, has announced plans to issue an additional 411 million shares to finance CNY2.25 billion for the establishment of its 4.5 generation production lines of TFT-LCD and to repay the bank loans of Beijing BOE Optoelectronics Technology, an affiliated enterprise of the group.

According to a report by BOE Technology Group, these additional shares target at Chengdu Industry Investment Group, Chengdu Hi-Tech Investment Group and Beijing Economic-Technological Investment & Development Corp. All of these shares will be subscribed by cash.

With the additional shares, Chengdu Industry Investment Group and Chengdu Hi-Tech Investment Group will become the third and the fourth biggest shareholders of BOE with stakes of 6.13% and 3.90%, respectively. Beijing Economic-Technological Investment & Development Corp. will be the eighth biggest shareholder of BOE with a 2.51% stake.

According to BOE Technology Group, the funds will be mainly used in the establishment of the company's TFT-LCD 4.5G lines and to repay the loans of Beijing BOE Optoelectronics Technology from the bank. The rest will be added to the current capital of the group.

Starting construction on March 26, 2008, the 4.5G production lines of BOE will cost CNY3.11 billion and its construction cycle is eighteen months. Apart from the company registered capital of CNY2.2 billion, the project will gain the other CNY910 million through financial institutions.

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