Sumitomo Chemical to Make CDT Wholly-owned Subsidiary

Sumitomo Chemical Co. Ltd. has announced it reached an agreement with Cambridge Display Technology Inc. (CDT) of the United States to acquire CDT as a wholly-owned subsidiary, according to a report in Tech-On.

The agreement is aimed at early commercialization of large-surface, low cost light-emitting materials and devices using polymer organic EL (electroluminescence).

"We will accelerate development of popular applications such as large-screen TVs and wall lighting systems," said Kiyohiko Nakae, Executive Officer, Sumitomo Chemical, explaining the reason for the acquisition. "Although expecting no return (from this investment) over the next two to three years, we aim to be ready when the rapidly growing market is established in and after 2010."

CDT Inc. was listed in 2004 on the NASDAQ exchange in the United States by Cambridge Display Technology Ltd. of the United Kingdom, which is CDT's development and business center in Cambridge, England. Sumitomo Chemical will purchase all of CDT's outstanding shares through NASDAQ.

The planned purchase price is approximately $285 million (USD). CDT will become Sumitomo Chemical's subsidiary following the approval at CDT's shareholders' meeting in fall 2007. Sumitomo Chemical formed Sumation Co. Ltd., a joint manufacturing and marketing venture with CDT, in November 2005.

Nakae indicated a roadmap, saying, "We will commercialize a display, which is not a TV, in 2008. Then in 2009 to 2010, we will strive to release an organic EL TV product." He explained that the color purity of emitted RGB light is equivalent to that of low-molecular organic EL materials.