(Yicai Global) Jan. 27 -- China's BOE Technology Group will splurge about CNY6.3 billion (USD980.7 million) to increase its stake in a sixth-generation active-matrix organic light-emitting diode display project in southwestern China to secure its business secrets.

BOE aims to raise its stake in the Mianyang-based factory to 90.4 percent from 66.7 percent via buying equity from Mianyang Technology City Industrial Development Fund, the Beijing-based display manufacturer said in a statement yesterday.

The deal will help BOE improve governance and the confidentiality of the emerging technology, it said. The price was based on a CNY26.7 billion (USD4.1 billion) valuation given by the asset management firm that no longer holds a stake in the project.
The factory in Sichuan province began churning out AMOLED displays for high-end smartphones in July 2019. The output capacity is 48,000 pieces per month.

BOE also has another AMOLED panel project in Chengdu, and it is currently building one more in Chongqing to be ready this year.

The electronic components maker said on Jan. 15 it is looking to raise CNY20 billion (USD3.1 billion) via private placement to invest in multiple projects, including pouring CNY6 billion into the AMOLED project in Chongqing. The Mianyang project was not one of the targets though.

BOE's stock price [SHE: 000725] was 1.6 percent up at CNY6.87 (USD1.10) in the afternoon.

Editor: Emmi Laine