LGDisplay's Guangzhou LCD Factory Sale Chinese Firms in the Running

TapTechNews July 12th news, according to the Korean media ETNews report, The potential buyer of LGDisplay's Guangzhou LCD factory has completed the due diligence and is negotiating with LGDisplay on specific conditions such as the transaction price, patents, and factory operation.

LGDisplay is expected to complete the selection of the transaction object and the negotiation of the final agreement soon.

The Korean media pointed out that three Chinese enterprises have expressed their intention to purchase LGDisplay's Guangzhou LCD factory, namely the panel producers BOE and CSOT, as well as the TV OEM manufacturer Zhaochi. Among them, Zhaochi aims to enhance the competitiveness of the TV business by acquiring the upstream LCD factory.

At present, this acquisition battle has evolved from a three-way standoff to a duel between CSOT and another enterprise, mainly because CSOT has proposed an acquisition offer of up to 2 trillion Korean won (TapTechNews note: currently about 10.558 billion Chinese yuan) and plans to buy the stakes of LGDisplay and Skyworth in this factory at the same time.

The amount of 2 trillion Korean won is equivalent to the amount mentioned in the previous report of the Yonhap News Agency and is higher than the previous estimated 1 trillion Korean won.

According to sources close to LGDisplay, recent situations show that CSOT is more likely to finally take over the ownership of the Guangzhou LCD factory.

LGDisplay is expected to use the funds obtained from this sale for the OLED field, especially to strengthen the small and medium-sized OLED business for customers such as Apple.