Purpose of Tender Offer
In the field of displays including those for television sets and personal computers, the shift from CRTs to flat panel displays is progressing at an accelerated speed. As more and more CRT manufacturers, as the AGC’s customers, are forced to withdraw from business, AGC has implemented measures to restructure its production system which includes stopping its CRT glass production in Japan, Southeast Asia and elsewhere.
As a result, AGC is currently continuing with CRT glass business in two production bases, one in South Korea and the other in China, through Hankuk Electric Glass (42.76% owned by AGC) which is the target company of this tender offer. However, AGC expects the environment surrounding this business to change even more rapidly in the future.
To respond to the rapid changes in this business environment, it is necessary to operate business more proactively and carry out management measures more promptly. Hence, with the aim of advancing those measures vigorously and actively, AGC has decided to purchase the target company’s shares held by its minority shareholders by means of the tender offer.
Upon completion of the tender offer, AGC plans to have the target company voluntarily delist itself subject to the approval of authority concerned in South Korea. LG Electronics, Inc., the second largest shareholder holding 20% of the shares of the target company, has heretofore been involved with the target company’s business operations, and has agreed to remain involved, along with AGC, in its future operations.
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