Samsung Display gets shareholder approval for eMagin acquisition

[Courtesy of Samsung Display]

South Korea’s Samsung Display received a resounding vote of confidence from shareholders with a majority approval rate exceeding 50 percent for its acquisition of eMagin, a U.S. organic light-emitting diode (OLED) manufacturer known for its exceptional technology in the extended reality (XR) field.

The green light from its shareholders enables the Korean company to proceed with its efforts to secure future growth opportunities.

Sources said on Sunday eMagin’s shareholders approved the M&A transaction in a meeting held on August 31, with a substantial 54.14 percent in favor and only 18.53 percent against. This vote comes after a process that began on July 20, whereby shareholders had their say on the deal. With over half of the shareholders expressing approval, the merger is a significant step closer towards completion by the end of the year.

The approval from shareholders follows the U.S. Federal Trade Commission (FTC)’s nod for the merger in July and the UK government’s recent completion of its technology transfer review. These developments indicate that Samsung Display’s M&A is progressing smoothly to date.

Back in May 2023, Samsung Display announced its intention to acquire eMagin to bolster its competitiveness in the future XR device market. eMagin brings critical process technology and foundational patents required for OLED-on-silicon (OLEDoS) manufacturing to the deal, with OLEDoS known for its low power consumption and relatively lightweight characteristics, making it a key technology for XR devices.

While some eMagin shareholders initially raised concerns about the low acquisition price per share, leading to a shareholder lawsuit, the recent shareholder vote with over 50 percent approval is expected to quell some of the controversy surrounding the M&A deal.

Nomura Securities, which is advising on the deal, previously deemed the per-share acquisition price of $2.08 to be fair, as it represented a 10 percent premium over the closing price of $1.89 on the day before the merger plan announcement, which was made on May 16.

Samsung Display’s acquisition of eMagin is not only a notable example of a South Korean company acquiring a U.S. high-tech firm but also highlights the intensifying technological competition in the XR market.