SEOUL (Reuters) -South Korea's LG Display said on Thursday it had agreed to sell its stake in its large liquid crystal display (LCD) plant in Guangzhou, China, to TCL's LCD unit CSOT for 10.8 billion yuan ($1.54 billion).
The sale includes LG Display's 80% stake in its large LCD panel plant and 100% of its LCD module plant, and is expected to be completed in March 2025, the Apple supplier said in a statement.
The move is meant to better focus its business on its organic light-emitting diode (OLED) operations, LG Display said, in which it is more competitive than in the saturated LCD market.
"We plans to focus more on the OLED business to enhance our business competitiveness and build stable profit bases. Also, we expect capital from the (plant) sale to help strengthen our financial stability," LG Display said in a statement.
With the sale, LG Display will no longer make LCD panels in China. It continues to produce higher-margin large-sized OLED panels there.
Analysts have said a sale would help LG Display's financial structure, after it reported several quarterly losses last year and this on weaker demand for gadgets that use display panels.
($1 = 7.0173 Chinese yuan renminbi)
(Reporting by Hyunsu Yim, Joyce Lee and Heekyong Yang; editing by Ed Davies, Mark Potter and Jason Neely)
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。