05.30.23
Japan Display Inc. (JDI) has signed a basic agreement on sponsorship support with OLED display maker JOLED Inc., which filed for civil rehabilitation proceedings on the same day.
Since then, JDI and JOLED have held extensive discussions, and JDI decided that its consolidated subsidiary JDI Design and Development G.K. (JDIDD) will acquire JOLED’s OLED technology development business and all related operations. JDI expects to sign the acquisition agreement with JOLED in early June. JDI will make a cash payment of JPY 1 billion ($7.2 million) for the acquisition.
The acquisition is subject to the approval of the supervisory court in JOLED's civil rehabilitation proceedings, the court’s permission based on Article 42-1 (2) of the Civil Rehabilitation Act, and the acquisition of necessary permits or approvals from other judicial and administrative authorities.
As announced on March 27, 2023, JDI signed a basic agreement with JOLED to drive OLED technology development through inheriting JOLED’s OLED display technologies and intellectual property rights (IP), while providing employment to JOLED employees. JDI also has agreed to support the smooth termination and liquidation of JOLED businesses that JDI does not inherit, thereby alleviating the impact and burden on local communities.
After conducting due diligence and engaging in extensive discussions with JOLED, JDI has reached a firm conviction that acquiring their talent and OLED IP and know-how will significantly expand and accelerate JDI’s METAGROWTH 2026 growth strategy and drive JDI customer and shareholder value growth.
Consequently, JDI has decided to acquire the JOLED OLED business. The petition for commencement of civil rehabilitation proceedings by JOLED was approved by the Tokyo District Court on April 3, 2023. However, the planned acquisition will be conducted independent of the rehabilitation plan under the civil rehabilitation proceedings.
JDI established JDIDD on May 25, 2023 as the successor company for the JOLED OLED Business. Working with the inherited employees and IP from JOLED, JDIDD will engage in OLED development.
The JOLED OLED Business encompasses JOLED’s OLED development business and all related operations, including IP and employees, with c. 100 JOLED employees expected to be employed by JDIDD. JDI will not inherit JOLED’s loss-generating product manufacturing and sales businesses.
JDIDD will acquire JOLED’s assets related to the businesses described above on the acquisition date scheduled for June 30, 2023. As of today, the cost of the assets to be acquired is estimated to be JPY 1 billion. JDIDD will not acquire any liabilities.
Since then, JDI and JOLED have held extensive discussions, and JDI decided that its consolidated subsidiary JDI Design and Development G.K. (JDIDD) will acquire JOLED’s OLED technology development business and all related operations. JDI expects to sign the acquisition agreement with JOLED in early June. JDI will make a cash payment of JPY 1 billion ($7.2 million) for the acquisition.
The acquisition is subject to the approval of the supervisory court in JOLED's civil rehabilitation proceedings, the court’s permission based on Article 42-1 (2) of the Civil Rehabilitation Act, and the acquisition of necessary permits or approvals from other judicial and administrative authorities.
As announced on March 27, 2023, JDI signed a basic agreement with JOLED to drive OLED technology development through inheriting JOLED’s OLED display technologies and intellectual property rights (IP), while providing employment to JOLED employees. JDI also has agreed to support the smooth termination and liquidation of JOLED businesses that JDI does not inherit, thereby alleviating the impact and burden on local communities.
After conducting due diligence and engaging in extensive discussions with JOLED, JDI has reached a firm conviction that acquiring their talent and OLED IP and know-how will significantly expand and accelerate JDI’s METAGROWTH 2026 growth strategy and drive JDI customer and shareholder value growth.
Consequently, JDI has decided to acquire the JOLED OLED business. The petition for commencement of civil rehabilitation proceedings by JOLED was approved by the Tokyo District Court on April 3, 2023. However, the planned acquisition will be conducted independent of the rehabilitation plan under the civil rehabilitation proceedings.
JDI established JDIDD on May 25, 2023 as the successor company for the JOLED OLED Business. Working with the inherited employees and IP from JOLED, JDIDD will engage in OLED development.
The JOLED OLED Business encompasses JOLED’s OLED development business and all related operations, including IP and employees, with c. 100 JOLED employees expected to be employed by JDIDD. JDI will not inherit JOLED’s loss-generating product manufacturing and sales businesses.
JDIDD will acquire JOLED’s assets related to the businesses described above on the acquisition date scheduled for June 30, 2023. As of today, the cost of the assets to be acquired is estimated to be JPY 1 billion. JDIDD will not acquire any liabilities.
