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

CTOnews.com December 31 news, Japan Display announced the completion of the sale of its mainland subsidiary, Suzhou JDI Electronics sold to Dongshan Precision for 26.73 billion yen.

JDI said the deal would result in a very profitable quarter of 14.8 billion yen (Extraordinary Gain; is a profit from non-operating items) and 3.5 billion yen in restructuring expenses. 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, in the future display module production will continue to be commissioned by Suzhou JDI Electronics OEM.

JDI signed the stake sale agreement in October this year and was originally scheduled to implement the plan from January to March 2023, but the company said it had met the sales conditions ahead of schedule and completed the sale on the 30th.

CTOnews.com learned 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 Suzhou JDI's accounts and records. JDI expects to receive the payment in January 2023.