Sunday, July 10, 2005
LG.Philips LCD Co. Ltd. has announced it would put up approximately 26,850,000 primary shares of common stock for sale, as the parent companies of the South Korea-based liquid crystal display joint venture look to reduce their stakes in the company.
The Registration Statement filed by LG.Philips with the U.S. Securities and Exchange Commission includes an offering by Philips Electronics N.V. to sell 6,710,000 secondary shares on stock in the form of American Depository Shares, or ADSs, each representing a half share of common stock. Recent press reports have indicated Philips Electronics is seeking to reduce its stake in LG.Philips, which like other flat-panel suppliers in recent quarters has seen sales and earnings lag as panel prices have fallen. Philips may sell all, or a portion of the common shares represented by the ADSs it intends to sell in this offering, and additional common shares, in a private placement in Korea, which will take place concurrently with this offering. LG Electronics Inc. (LGE) is also considering the sale of a portion of its interest in the Company in the same private placement.
Both Philips and LGE intend to sell the same number of shares so that their respective ownership interest in LG.Philips LCD following these concurrent sales remain identical.
In April, LG.Philips announced it would sell zero couple convertible bonds valued at $400 million, to help fund future capital expansion plans. The company said proceeds from the stock offering would also fund capital expansion.
LG.Philips LCD is now constructing a Generation 7 LCD fab to build panels for the large flat-panel TV market.
By: DocMemory
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