Exclusive Negotiations Begin Under Detailed Conditions
Sale Price Estimated at Late 10 Trillion to 20 Trillion Won
LG Display has decided to sell its Guangzhou factory in China, which produces liquid crystal displays (LCD) for TVs, to China Star Optoelectronics Technology (CSOT). The company is expected to accelerate the reduction of its large-size LCD business share and advance its business structure centered on organic light-emitting diode (OLED) technology.
LG Display announced on the 1st that it has selected CSOT, a display subsidiary of Chinese home appliance company TCL, as the preferred exclusive negotiation partner for the sale of its Guangzhou large-size LCD production corporation and will proceed with exclusive negotiations.
Previously, LG Display had formalized the sale of the Guangzhou factory and had been negotiating with major companies.
In the industry, it is known that three to five companies, including China's largest display companies BOE and CSOT, are actively participating in the bidding competition for the Guangzhou LCD factory, and the sale price is estimated to be between the high 10 trillion won range and 20 trillion won.
LG Display is reported to have selected CSOT as the preferred negotiation partner by evaluating the acquisition prices proposed by various companies, operational support plans, and other important conditions, considering the high likelihood of deal closure and the best terms offered.
An LG Display official explained, "We are now entering the stage of full exclusive negotiations, and the sale price has not yet been finalized."
Going forward, LG Display and CSOT will begin full-scale contract negotiations over detailed terms for the Stock Purchase Agreement (SPA). However, it is expected that it will take more time until the negotiations are completed.
LG Display stated, "If there is a decision regarding the conclusion of the SPA in the future, we will disclose it in accordance with relevant regulations."
Meanwhile, if this sale contract is completed, LG Display will completely end its large-size LCD business following the cessation of domestic production of LCD TV panels at the end of 2022.
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