Philips selling its share worth $1 billion in LG Display

Amsterdam: Dutch electronics giant Royal Philips Electronics plans to sell about $1 billion worth of shares in LG Display at a discount of anywhere between 4.8 to 8.1 per cent, according to reports.

Philips is reported to be offering 23 million shares, the equivalent of a 6.4 per cent stake in the company, at 42,750 Won to 44,250 Won each (around $44).

LG Display, formerly known as LG Philips LCD Co. was established in 1999 as a joint venture between Philips and LG Electronics. The company reported record net income of 760 billion Won in the three months ended 31 December, because of rising demand for flat screens used in computers and televisions.

The deal, managed by Citigroup and Credit Suisse Group, would shrink Philips' holding in the company, formerly known as LG Philips LCD, to 13.5 per cent from the current 19.9 per cent. LG Electronics Inc holds 37.9 per cent in the company.

The Amsterdam-based company, which is exiting the semiconductor and display operations, sold a 13 per cent stake in LG Display in October last year, cutting its shareholding to 19.9 per cent from 32.9 per cent.

Philips may reportedly sell an additional 5.75 million shares. On over allotment option would increase the size of the sale by 25 per cent, lifting the value of the deal to about $1.29 billion. The Dutch electronics maker plans to sell its shares in Seoul-based LG Display by 2010.

Philips is Europe's largest manufacturer of LCD TVs and LG is Korea's second largest manufacturer.