News Article
Shenzhen Kaifa, Epistar, Evertop & Country Lighting To Push LEDs Forward
The joint venture will engage in the research, manufacture and sale of light emitting diode (LED) wafers, chips, source modules, light sources and lighting with a total investment amount of $160 million.
Shenzhen Kaifa Technology, a subsidiary of Great Wall Technology, has entered into a joint venture (JV) agreement with Epistar JV Holding (BVI), Evertop (Fujian) Optoelectronics and Country Lighting (BVI) (together with other JV Parties).
All the partners are based in China, except Evertop and Country Lighting, which are incorporated in the British Virgin Islands.
Epistar and Country Lighting are investment holding companies, while Evertop is a designer and manufacturer of LED related components and modules, and Great Wall Technology is a manufacturer of computer parts.
The new JV company, KFES Lighting Co., Ltd., is engaged in the research, manufacture and sale of light emitting diode (LED) wafer, LED chips, LED light source modules, LED light source and LED lighting and provision of after-sales services, with a registered capital of $120 million and total investment amount of $160 million.
Under the terms of the JV agreement, Great Wall Kaifa, Epistar, Evertop and Country Lighting will own 44%, 40%, 9% and 7% stakes, respectively, in the JV, by making a capital injection of $52.8 million, $48 million, $10.8 million and $8.4 million, respectively. It is expected that the capital investment by Great Wall Kaifa will be funded by its internal resources.
The registered capital of KFES will be contributed as capital injection by the JV parties in two stages in cash.
