Samsung Electronics will acquire all of the shares held by Samsung Display in Chinese display maker TCL China Star Optoelectronics Technology (TCL CSOT).
Samsung Electronics said Fridy that it has agreed to acquire a 10.16% stake in TCL CSOT, held by Samsung Display, for approximately 1.2718 trillion won. The company's board of directors approved the proposal the previous day, and the transaction is scheduled to take place in December.
The shares were acquired when Samsung Display sold its LCD (liquid crystal display) factory in Suzhou, China, to CSOT in 2020. At the time, part of the sale proceeds was received in the form of stock, resulting in a 12.33% stake in CSOT. However, the ownership ratio later decreased to 10.16% due to CSOT's rights offering (paid-in capital increase).
The acquisition is seen as an effort to stabilize the LCD panel supply chain for Samsung Electronics, which manufactures TV products. Unlike Samsung Display, which has completely exited the LCD business, Samsung Electronics must continue to procure LCD panels from Chinese companies such as TCL and CSOT for use in premium QLED TVs and other products, making strategic cooperation with key suppliers essential.
In addition, through this transaction, Samsung Display will secure approximately 1.3 trillion won in cash, providing funds for investment in next-generation displays such as OLED (organic light-emitting diode).
A Samsung Display official said, "Following the termination of our LCD business, we decided to sell our CSOT stake to Samsung Electronics as the business relevance between the two companies has weakened."
in INDUSTRY
