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LG Display. (Photo=Yonhap News) |
[Alpha Biz= Reporter Kim Jisun] LG Display has streamlined its equity structure by acquiring shares previously held by China's Skyworth.
On the 20th, Skyworth announced that it would transfer a 10% stake in its Guangzhou plant to LG Display for approximately 1.3 billion yuan (around 250 billion won). The ownership of the Guangzhou plant is now divided as follows: LG Display holds 70%, the Guangzhou Development Zone holds 20%, and Skyworth retains 10%. The private sector’s share, excluding the Guangzhou local government, now totals 80%.
This move is expected to accelerate the sale process of the Guangzhou plant. With LG Display taking over Skyworth's stake, the preferred bidder, CSOT, no longer needs to negotiate separately with both LG Display and Skyworth. This allows LG Display to potentially conduct a "bulk sale" of the private sector's stake in the plant.
Skyworth will also benefit from increased liquidity and the optimization of its investment portfolio as a result of this transaction.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
