Philips to Pull Out of LG.Philips LCD

LG.Philips LCD (LPL), the joint venture between LG Electronics and Philips Electronics, has been around for 7 years, but Philips is ready to pull out. Philips owns 32.9% of LPL’s shares and will sell all or part of it in 2007. The current agreement of Philips having to hold at least 30% of LPL lasts until July 2007. After that, Philips is free to do whatever. Philips, though a manufacturing brand in Europe, is more known for making money with money and has done a very good job.

LG LCD logo?

Philips is slated to make over 3 trillion won in capital gains from the comparatively small amount of 725 billion won invested in 1999 for 50% of shares. Philips’ 117,625,000 shares are worth more than 4 trillion won (US$4.2 billion) as of August 7 exchange rates. LGE holds 37.9% of LPL and will need 40% to hold management rights in the LCD industry.

LG Electronics began LCD production in 1999 (LG LCD) and in August, Philips purchased 50% of LG LCD and formed LG.Philips LCD. Recently,Royal Philips Electronics decided to change its name to simply Royal Philips.

Source: Hankook Newspaper

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