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Cheil to acquire Ace Digitech in $265 mn deal

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CIOL Bureau
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SEOUL, S KOREA: South Korean apparel to electronics materials maker Cheil Industries said on Wednesday it would acquire Ace Digitech in all-share deal worth around $265 million in a bid to boost its presence in the flat-screen business.

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Cheil, a core unit of South Korea's biggest business conglomerate Samsung Group , will issue 2.4 million new shares worth around 289 billion won ($265 million) at the current market value to acquire the maker of polarizers, a core material in LCD flat-screen displays, which are widely used in televisions, computer monitors and notebooks.

The company, which is the top shareholder of Ace Digitech with a 23 per cent stake, will offer 0.13717 Cheil Industries shares for each Ace Digitech share, it told the Korea Exchange.

The move is part of Samsung's drive to vertically integrate supplies of key components and materials for core products such as flat-screens, TVs and handsets amid growing concerns about protracted disruptions to supplies from Japan following the March 11 earthquake and tsunami.

Last month, Samsung LED said it would set up a 80 billion won joint venture with Japan's Sumitomo Chemical to produce sapphire substrates used to make light-emitting diodes

Shares in Cheil Industries rose 5.3 per cent and Ace Digitech, which competes with Japan's Nitto Denko , gained 3.9 per cent as of 0558 GMT.

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