Material | July 31, 2007
Sumitomo to acquire Cambridge<br>Display Technology
Sumitomo Chemical has entered into an agreement with Cambridge Display Technology (CDT below) to acquire CDT as a wholly owned subsidiary.
The planned purchase price is approximately US$ 285 million. Following the approval of the acquisition at a meeting of CDT shareholders anticipated to be held in autumn of this year, Sumitomo Chemical will pay CDT shareholders a consideration for the purchase of all outstanding shares of CDT stock and the company will become a wholly owned subsidiary of Sumitomo Chemical. In connection with this transaction, major CDT shareholder Kelso & Company along with certain members of CDT's senior management and other shareholders holding cumulatively an approximate 43% of CDT's common stock have entered into agreements to vote all their shares in favor of the transaction at their shareholders' meeting. Organic light emitting diode (OLED) displays exhibit fine resolution and high visibility, and because they are self-luminescent, are highly responsive and yield outstanding video images, and with their low electrical consumption, also offer environmentally friendly performance. Polymer OLEDs (P-OLEDs) are processable in solution and can therefore be applied using a printing technique to form the luminescent substrate, making possible the highly productive manufacture of large-size panels at low cost. The market for P-OLEDs is expected to see rapid growth going forward, primarily for use in next generation displays for large-screen televisions and in lighting applications.