Samsung SDI Pursuing Partial Sale of Its Stake in Samsung Display

For Securing Investment Resources and Improving Financial Structure

Samsung SDI is pursuing a plan to sell part of its stake in Samsung Display in order to secure investment funds for establishing a mid- to long-term growth foundation.

On the 19th, Samsung SDI announced in a filing that it "reported to the board of directors the plan to sell its stake in Samsung Display and other assets it holds to secure investment resources and improve its financial structure."

Samsung SDI Giheung plant. The Asia Business Daily DB

However, the company added that "the counterparty, size, terms, and timing of the transaction have not yet been decided, and the Sustainability Management Committee, which is composed of outside directors, will review various matters before proceeding with the reporting and approval process by the board of directors."

Samsung SDI holds a 15.2% stake in Samsung Display, which is known to be worth more than 10 trillion won based on book value.

This push to sell part of its stake reconfirms the company's intention to continue investing, even amid the recent overall slump in the domestic battery industry. Despite posting a large operating loss last year, Samsung SDI has been building a mid- to long-term growth foundation by securing production lines for energy storage system (ESS) batteries and investing in production lines for lithium iron phosphate (LFP) and all-solid-state batteries.

Once this stake sale is completed, Samsung SDI is expected to gain additional flexibility in terms of financial soundness.