LG Electronics and LG Micron to Exchange Business Divisions

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2008-02-21 16:19

Seoul--(뉴스와이어)--LG Electronics, a global leader and technology innovator in consumer electronics, today announced that its board approved an agreement to exchange LG Electronics’ printed circuit board (PCB) division with it affiliate LG Micron’s plasma rear panel (PRP) division. This restructuring agreement improves efficiency and raises equity for both companies.

According to the agreement, the transfer and acquisition will take place on May 1, 2008, and will include assets, liabilities and human resources. However, accounts receivable, accounts payable, as well as some real estate like land and buildings will be excluded.

LG Electronics decided to pursue this agreement based on the enhanced efficiency, cost effectiveness and overall competitiveness brought about by producing both plasma display panels and plasma rear panels together. Meanwhile, LG Micron will be able to boost efficiency of producing the components in which it specializes, by acquiring LG Electronics’ printed circuit board division.

The market value of LG Electronics’ printed circuit board division is assessed at USD 316.3 million (KRW 299.2 billion), including investments in kind. The market value of LG Micron’s plasma rear panel division is assessed at USD 176.3 million (KRW 166.8 billion), leaving a difference of USD 140.0 million (KRW 132.4 billion). This difference will recompensed in full to LG Electronics by LG Micron in the form of newly issued shares, whose issue price will be set at USD 43.08 (KRW 40,750), the closing price on the day prior to the board of directors meeting at which the stock issue will be approved.

LG Electronics is the largest stockholder of LG Micron. This agreement will increase LG Electronics’ stake from 36 percent to 55 percent.

On May 1, LG Electronics will provide to LG Micron USD 141.1 million (KRW133.5 billion) of investments in kind, including but not limited to printed circuit board manufacturing facilities in Chungju, Korea, printed circuit board manufacturing facilities and the land on which it sits in Osan, Korea, as well as equipment and machinery.

The agreement will be brought before shareholders of LG Electronics and LG Micron at respective extraordinary meetings of shareholders for approval.

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About LG Electronics, Inc.

LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in over 110 operations including 81 subsidiaries around the world. With 2007 global sales of USD 44 billion, LG is comprised of four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG is the world’s leading producer of mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems. For more information, please visit www.lge.com.

* Amounts in Korean Won (KRW) are converted into US dollars (USD) at KRW 946 per USD, the closing price on the day prior to the board of directors meeting.

LG Electronics 개요
LG Electronics Inc., (KSE: 06657.KS) is the leader in consumer electronics and mobile communications. The company has more than 72,000 employees working in 77 subsidiaries and marketing units around the world. LG Electronics is the world’s largest producer of CDMA handsets, residential air conditioners, optical storage devices and home theatre systems. With total revenue of more than USD 35 billion (consolidated USD 45 billion), LG Electronics is comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media. For more information, please visit www.lge.com.

웹사이트: http://www.lge.com