PHILPS intends to terminate the cooperation with LG sold LPL shares 3 billion profit

In August 11th, according to Taiwan media reports, the day before the sale of PHILPS semiconductor business, will sell all its shares with the world's second largest panel factory in LPL 32.9%, this means that the joint venture relationship maintain 7 years of PHILPS and LG temporarily come to an end. According to foreign media estimates, PHILPS will be able to make a profit of about 3 trillion won ($3 billion 100 million).

It is reported that LPL second quarter earnings losses of $322 billion won, compared with the same period in 2005 profit of 41 billion won a substantial decline, and delayed the next generation panel plant investment plan. Thus, PHILPS outlook for LCD bearish, the company last week revealed tendency to exit the LPL business plan.

Reported that, according to Philips and LG to the previous agreement, before the end of July 2007, each party shall hold shares of LPL30%, namely Royal Philips may be in the next year after the expiry of the agreement, began to sell the entire stake. A South Korean media reports, South Korea LPL and PHILPS 7 confirmed that all of the shares, Royal Philips plans to sell LPL but LPL, head of public relations Sohn Young-jun said, Royal Philips has already revealed clearing LPL equity may, however, so far, Royal Philips has yet to determine when and how to sell.

PHILPS PR Director Park Yong-beom said, Royal Philips will be renamed the name from the original Royal Philips Electronics Royal Philips, visible PHILPS decided to reduce reliance on investment in the electronics industry, especially in the electronics industry boom cycle of investment, such as semi conductors, and electronic components, and plans to expand investment in medical market. While holding LPL 37.9% stake in LG, said that LG is currently no intention to reduce the stake in LPL, and even Royal Philips next year, clearing all LPL equity, will not affect the LG's investment plan for LPL. Cho Jung-kwon LG is responsible for the public relations department said, in the panel industry, the shareholding ratio of 40% is equal to a single enterprise holds the operation right of enterprises, currently has 37.9% stake in LPL LG, LG, LPL increased 3% of the equity is not a difficult thing.