LG Electronics is considering selling part of its stake in its affiliate LG. Philips LCD Co., sources said Wednesday.
"We are considering selling the stake to repay debts and improve our financial
status," an official at LG Electronics said.
"However, the time frame and the scale of the share sale has not yet been decided."
LG Electronics and Royal Philips Electronics NV each hold a 44.5 per cent stake in
LG. Philips LCD, the world's second-largest producer of flat screen televisions and
LG Electronics is only expected to sell up to a 14.5 per cent stake as it needs to
maintain a 30 per cent ownership to retain LG.Philips LCD under its wing, sources
The most likely scenario would be of LG Electronics selling around a 5 to 10 per cent
stake, they said.
LG Electronics will be allowed to sell the stake once a one-year lockup period ends
in July. The LCD monitor producer went public in July 2004 in South Korea and the