CMO-Innolux merger gives birth to Chimei Innolux

Chi Mei Optoelectronics Corp. (CMO) and Innolux Display Corp. are planning a merger through 100 percent of the exchange of their common shares. Both companies held board meetings for the approval of the merger, and agreed that each 2.05 shares of CMO common share will be exchanged into one Innolux common share. The new company following the merger will be re-named as Chimei Innolux Corp. The merger is subject to the completion of all legal procedures.

CMO has the fourth largest panel capacity and offers complete range of flat display products and technology. Innolux, on the other hand, excels in its integration of system assembly and superior clients exposures in the display industry. The combination of the two companies would create significant synergies in integrated supply chain management, streamlined operation, great economy of scale, and complementary customer base.

Innolux chairman H.C. Tuan envisions that the newly formed entity will reengineer the respective resources it inherits from its original companies, thus it will demonstrate its competitiveness in all aspects and soon emerge as the new industry leader with full-fledged products and services provided to its broad-based customers around the globe, hence rendering the best value proposition to its shareholders.

The combination also materializes the collaboration between Chimei Group and Foxconn Group, two of the most influential conglomerates from Taiwan, and paves the way for more business rationalization and development.