Samsung SDI to sell Samsung Display stake for $3.2 bil. to fund investments
Samsung SDI, the battery-making arm of Samsung Group, said Friday it will sell part of its stake in Samsung Display to raise funds for future growth investments. Samsung SDI said in a regulatory filing that it will transfer 13.088 million shares in Samsung Display to the display maker, representing about 33 percent of its holdings. The shares are valued at about 4.45 trillion won ($3.2 billion).…
Samsung SDI, Samsung Group's battery manufacturing subsidiary, has announced plans to offload a portion of its investment in rival Samsung Display. In a regulatory filing, the company revealed it will transfer 13.088 million shares, equating to approximately 33 percent of its stake, to Samsung Display. The value of these shares is estimated at 4.45 trillion won, or roughly $3.2 billion.
Following the completion of the transaction, Samsung SDI's ownership in Samsung Display will be reduced from 15.2 percent to 10.2 percent. The specific utilization of the funds raised from the share sale remains undisclosed by Samsung SDI. However, industry analysts anticipate that the capital will be allocated towards facility expansions, notably its new battery plant set to be built in New Carlisle, Indiana.
This strategic move is viewed as a reaffirmation of Samsung SDI's dedication to augmenting investments for fostering medium- to long-term growth. The demand for energy storage and uninterruptible power supply systems has seen a significant surge, primarily propelled by the burgeoning expansion of artificial intelligence data centers. Furthermore, Samsung SDI has been actively pursuing growth strategies in various sectors.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
