(Yicai Global) Feb. 24 -- Shares of Focuslight Technologies slid after the Chinese developer of laser components said it has abandoned a plan to acquire South Korean optical semiconductor equipment maker Cowin DST because of delays in the government review process.

Focuslight’s shares [SHA: 688167] closed down 6.2 percent at CNY126.12 (USD18.21) each today.

According to the Xi'an-based firm's announcement late yesterday, it dropped the acquisition plan due to the long review time and the potential negative impact of the resulting uncertainty, adding that the move was mutually agreed by both parties.

Focuslight announced last September that it planned to pay CNY350 million (USD50.5 million) to acquire all of Anyang-based Cowin DST. 

South Korea's trade ministry said at the time that it needed to review whether the technology owned by Cowin DST was part of the national core technology. If so, the deal would need pre-approval from the ministry, Focuslight said yesterday. But since then the company has not received any results from the government.

Cowin DST is the world’s leading supplier of display panels and photomask repair and optical semiconductor inspection gear, according to Focuslight. 

The Korean company is one of several suppliers globally to have mastered liquid-crystal display and organic light-emitting diode laser repair technologies, and its products are used by big panel makers in China, Japan, and its home country.

By using Cowin DST’s device integration and development capabilities, Focuslight hoped to promote the commercialization of its new optical equipment and develop the supply capacity of high-end semiconductor process devices, an executive at the company said at the time of the acquisition announcement on the investor feedback platform of the Shanghai Stock Exchange, where Focuslight is listed.

Editor: Tom Litting