Samsung SDI to sell 4.45 tln won worth of Samsung Display shares to fund facility investment
SEOUL, Aug. 21 (Yonhap) -- Samsung SDI Co., a major South Korean battery maker, ...
Major South Korean battery manufacturer Samsung SDI announced on August 21 that it will sell a significant portion of its stake in Samsung Display Co. for 4.45 trillion won (US$3.21 billion) to fund overseas facility investments. In a regulatory filing, Samsung SDI disclosed its intention to sell 13.09 million shares, representing approximately 33% of its 39.86 million-share stake in the display maker.
This sale will reduce Samsung SDI's ownership of Samsung Display from 15.2% to 10.2%. The proceeds from the share sale are expected to primarily be used for facility investments, including at the Synergy Cells battery plant currently under construction in Indiana, United States. Synergy Cells is a joint venture between Samsung SDI and General Motors Co. The share sale is seen as a reaffirmation of Samsung SDI's commitment to expanding investments for mid- to long-term growth, as the company has recently demonstrated signs of sustained improvement in its earnings.
In the second quarter of the year, Samsung SDI reported revenue of 3.77 trillion won and operating profit of 203.8 billion won.
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