LG Display to Sell Guangzhou LCD Factory to TCL China Star
TapTechNews August 1st news, LG Display has just released an announcement to explain the relevant content that the Korean Economic Daily reported in February this year about LGD accelerating the sale of its Chinese factory....
LG Display stated that the company has selected TCL China Star Optoelectronics Technology Co., Ltd. as the preferred bidder for the equity of its LCD factory in Guangzhou, China, and will start exclusive negotiations.
As our business structure is transforming from LCD liquid crystal display to mainly OLED, we have conducted multiple reviews on the strategic use of liquid crystal display assets (including the LCD factory in Guangzhou). Therefore, TCL China Star was selected as the preferred negotiation party for selling the shares of the Guangzhou liquid crystal display production company on August 1, 2024, and will conduct exclusive negotiations.
In May this year, Yonhap News Agency said that LG Display has started the negotiation process of the review procedures with the Ministry of Trade, Industry and Energy of South Korea regarding the relevant matters of selling the Guangzhou factory. Allegedly, LG Display has received letters of intent to acquire from BOE, TCL China Star, Skyworth Group and financial investors, etc.
Korean media disclosed that China Star Optoelectronics has proposed an acquisition offer of 2 trillion Korean won (TapTechNews note: currently about 10.52 billion yuan), and plans to buy the stakes of LG Display and Skyworth in the factory at the same time.
LG Display's move is aimed at further optimizing the business segment mainly based on organic light-emitting diodes (OLED). The company has been accelerating the business restructuring mainly based on OLED since it shrank the proportion of LCD projects at the end of 2022.
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It is said that the transaction of LG Display's Guangzhou LCD factory is nearing the end, and the price is expected to reach 2 trillion Korean won.