The final sale price of LG Display’s Guangzhou liquid crystal display (LCD) factory, which was sold to China’s TCL, has been confirmed at 2.2466 trillion won, more than 200 billion won higher than initially expected.
On the 11th, LG Display announced via an electronic disclosure to the Financial Supervisory Service that the sales price of the Guangzhou 8.5-generation LCD factory shares had been determined as such.
In September last year, LG Display signed a contract to sell the Guangzhou factory to China Star (CSOT), TCL’s display subsidiary, with an expected sale price of 2.0256 trillion won at the time.
The increase in the final amount is attributed to the solid performance of the Guangzhou factory last year and the rise in the exchange rate of the Korean won against the Chinese yuan (from 187.56 won to 200.82 won) after the contract was signed.
Sung-Hyun Kim, Vice President of LG Display, stated at a shareholders’ meeting last month that “this year’s business results will be reflected in the sale price, and the settlement amount will not decrease.”
The factory title was officially transferred to CSOT earlier this month, and TCL has changed the factory’s name to ‘T11’ and begun production as of the 1st. With the sale of this factory, LG Display has completely withdrawn from the large LCD business.
The sale proceeds are scheduled to be paid in installments within this year, and LG Display plans to use them for facility investments, research and development, and operating expenses to advance its organic light-emitting diode (OLED) business.