LG Electronics Considers LG Philips Share Sale

Thursday, June 23, 2005

LG Electronics Considers LG Philips Share Sale

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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 computer monitors.

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 said.

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 United States.