Compal is to purchase a 2.15% stake in Leshi Zhixin Electronic Technology, a TV-making subsidiary of LeEco. Compal will pay CNY700 million ($102 million) and Compal president, Ray Chen, says that this is to “protect the interests of its shareholders”. LeEco has been in heavy debt to Compal and it seems as though some of these debts have been converted into an investment in equity. Since November 2016, LeEco has been paying its debts regularly and Compal says that it does not foresee any future bad debts. Chen added that the companies were looking to cooperate further, with the possibility that Compal could make TVs for LeEco.
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