BOE acquires 30% equity transfer right of Rainbow Optoelectronics for RMB 4.849 billion
On June 24, Rainbow shares announced that it had signed an equity transfer agreement with BOE, and BOE obtained the right to acquire 30% of the target company's equity at a price of 484,863,690 yuan. After the completion of this transfer, the company still holds 69.79% of Rainbow Optoelectronics' equity and remains the controlling shareholder. Rainbow Optoelectronics is still included in the company's consolidated financial statements.
The announcement shows that the Seventh Session of the Tenth Board of Directors of Rainbow Display Devices Co., Ltd. (hereinafter referred to as the "Company") reviewed and approved the "Proposal on the Transfer of Part of the Equity of the Company's Controlling Subsidiary". The Company will transfer 30% of the equity (hereinafter referred to as the "Target Equity") of its controlling subsidiary Xianyang Rainbow Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Rainbow Optoelectronics" or "Target Company") through public listing.The company has received a notice from Western Equity Exchange Co., Ltd. (hereinafter referred to as the "Equity Exchange") that BOE Technology Group Co., Ltd. (hereinafter referred to as "BOE") has acquired the right to acquire 30% of the equity of the target company at a bid price of RMB 484,863.69 million.On June 24, 2025, the company signed a "Share Transfer Agreement" with BOE.The transfer of the equity of the holding subsidiary is still subject to the completion of industrial and commercial change registration procedures.The company held the seventh meeting of the tenth board of directors on April 16, 2025, and reviewed and approved the "Proposal on Transferring Part of the Equity of the Company's Controlling Subsidiary". In order to seize the development opportunities of the new display industry, optimize the company's main business structure, enhance the company's business risk resistance, and meet the company's substrate glass business development strategy needs, it is agreed that the company will transfer the company's 30% equity in Rainbow Optoelectronics, a controlling subsidiary, through the property rights exchange in a public listing manner.The announcement stated that this transfer will help the company further accelerate the integration and innovation of the new display industry, meet the company's substrate glass business development strategy needs, give full play to the advantages of the substrate glass industry, and comply with the industry development trend and the company's overall strategic development plan. This transfer will not harm the interests of the company and all shareholders. After the completion of this transfer, the company will still hold 69.79% of the shares of Rainbow Optoelectronics and will still be the controlling shareholder of Rainbow Optoelectronics. Rainbow Optoelectronics will still be included in the company's consolidated financial statements.On June 17, BOE announced that Rainbow Optoelectronics intends to sell its 30% stake in Rainbow Optoelectronics. BOE said it intends to acquire the above 30% stake, and the minimum price for this transaction is 4.849 billion yuan.BOE said that the acquisition of 30% stake in Rainbow Optoelectronics is in line with BOE's development strategy, which will help the company continue to consolidate and expand its competitive advantages, strengthen BOE's influence in the industry, and promote the overall competitiveness of the company's business.
