Japan's JDI sold its Suzhou subsidiary to Dongshan Precision for 26.73 billion yen

On December 31st, Japan Display announced the completion of the sale of its mainland subsidiary, and Suzhou JDI Electronics sold it to Dongshan Precision at a price of 26.73 billion yen.

JDI said the deal would generate an Extraordinary Gain of 14.8 billion yen for the quarter and restructuring expenses of 3.5 billion yen. It is worth mentioning that the two amounts are current estimates and may change in the future.

JDI pointed out that after the completion of the transaction, Suzhou JDI Electronics is no longer a subsidiary, but the company has signed a cooperation agreement with Dongshan Precision, and the production of display modules will continue to be commissioned by Suzhou JDI Electronics in the future.

JDI signed the equity sale agreement of the subsidiary in October this year, which was originally scheduled to implement the plan from January to March 2023. However, the company indicated that it met the sales conditions ahead of schedule and completed the sale on the 30th.

IT House understands that JDI expected to sell for only 20.5 billion yen when IT announced the news in October, but raised the price to 26.73 billion yen after completing the accounting and recording of Suzhou JDI Electronics. JDI expects to receive the payment in January 2023.