AV Concept further acquires shares in Wavesquare and Accupix

Distributor becomes largest Wavesquare shareholder as it taps LED TV and 3D markets' potential growth.

Leading electronic components distributor AV Concept Holdings Limited announced on Tuesday that its wholly-owned subsidiary, New Concept Capital Limited, entered into share purchase agreements to increase its shareholding interests in Wavesquare Inc. and Accupix Co., Ltd. Both transactions are expected to be completed no later than 30 September 2010, and will be funded by the Group’s internal resources, according to an AV Concept report.

According to the agreements, AV Concept will acquire 139,048 existing shares of Wavesquare, representing 2% of Wavesquare’s issued share capital, at an aggregate consideration of US$1,500,000 (equivalent to approximately HK$11,700,000). Following the completion, AV Concept’s interest in Wavesquare will increase from approximately 24.9% of Wavesquare’s existing issued share capital to approximately 26.9%, thus becoming the single largest shareholder of Wavesquare.

In addition, AV Concept has agreed to acquire 97,333 shares of Accupix, representing approximately 2.66% of Accupix’s issued share capital, for a total consideration of US$2,000,000 (equivalent to approximately HK$15,600,000). Upon completion, AV Concept will increase its shareholding interest in Accupix from approximately 20% of its existing issued share capital to approximately 22.66%. Besides, it is guaranteed that the net income of Accupix for the 12-month period from 1 April 2010 to 31 March 2011 (both days inclusive) will be no less than US$25,000,000 (equivalent to approximately HK$195,000,000).

Mr. So Chi On, Chief Executive Officer of AV Concept, said, “We are confident in the strong potentials in both the LED TV and 3D markets, thus enlarging our shareholding interests in Wavesquare and Accupix will allow AV Concept to further capture the anticipated business growth. This is also in line with our strategy to strengthen our foothold in upstream markets through strategic investments. We will continue to look for business opportunities, especially green tech and LED related, to maximise the return to our shareholders.”

Wavesquare is a Korean-based company engaging in the research, development and manufacturing of blue high brightness LED chips. It develops vertical high brightness LED chips with high luminosity and other physical properties that are comparable with other worldwide leading producers but at a lower cost and with technology that does not involve using toxic substances such as mercury or lead that pollute the environment.

Established in May 2000, Accupix is a limited liability company incorporated in Korea. Currently, Accupix is engaged in manufacturing, designing and providing solutions of 3D TV shutter glasses. As a pioneer in 3D TV shutter glasses technology, Accupix has commenced production of 3D TV shutter glasses since February 2010 and supplies the respective technology to Samsung and two other leading electronics brands in Japan. It also signed a supply agreement with LG-Electronics in late 2009, becoming the exclusive manufacturer of 3D shutter glasses for its 3D TVs.