Samsung SDI Sells Part of Its Stake in Samsung Display, Secures 4.4 Trillion Won

Samsung Display to Repurchase Its Own Shares

Samsung SDI's Stake to Drop from 15.22% to 10.22% After Transaction

Samsung SDI has decided to sell a portion of its stake in Samsung Display for 4.45 trillion won.

Samsung SDI Giheung Plant exterior view. Samsung SDI

On August 21, Samsung SDI announced through a public disclosure that its board of directors decided to transfer 13,088,235 shares of Samsung Display, which it currently holds, to Samsung Display.

The shares to be sold amount to 13,088,235, accounting for about 33% of the total 39,856,654 shares held. The monetary value is 4,449,999,990,000 won.

Samsung Display will buy back the shares as treasury stock at 340,000 won per share. The transaction is scheduled to take place on August 27.

After the transaction, the number of Samsung Display shares held by Samsung SDI will decrease to 26,768,419. The ownership stake will drop by 5 percentage points, from 15.22% to 10.22%.

Although Samsung SDI did not disclose specific plans for the use of the funds, it is expected that the money will be used for facility investments, including Synergy Cells' battery plant currently under construction in New Carlisle, Indiana, United States.

In particular, this stake sale is interpreted as a renewed commitment by Samsung SDI to continuously expand investment and lay the foundation for mid- to long-term growth. Recently, driven by the increase in artificial intelligence (AI) data centers, demand is growing for energy storage systems (ESS) for power and uninterruptible power supply (UPS) systems, and the company is also delivering results in new markets such as humanoids and aerospace.

Samsung SDI is also known to be continuously investing in lithium iron phosphate (LFP) and solid-state battery production lines since last year.

A Samsung SDI representative stated, "We expect that the cash secured through this deal will enable aggressive investments for future growth," adding, "It will also have a positive effect in terms of financial soundness."

This content was produced with the assistance of AI translation services.