Samsung Electronics to acquire 10.16% of TCL CSOT for $950 million — Korea Herald

Samsung Electronics will acquire from Samsung Display the entire stake in Chinese display panel manufacturer TCL CSOT. The deal concerns a 10.16% stake worth approximately 1.27 trillion won, or $950 million, Korea Herald reports.

In a regulatory filing, Samsung Electronics said the purpose of the deal is to strengthen strategic cooperation. The transfer of the stake will move the investment within the group directly to Samsung Electronics, which needs stable supplies of LCD panels for consumer electronics.

LCD panel supplies

The deal could strengthen Samsung Electronics' position in negotiations with TCL CSOT over panel supplies. The company uses LCD displays in televisions, home appliances and mobile devices.

More current news is available on the UA.News Telegram channel Telegram.

In particular, LCD panels are used in Samsung QLED televisions with quantum dot technology, as well as in some entry-level Galaxy A series smartphones.

Samsung Display's transition to OLED

Samsung Display received TCL CSOT shares in 2020 as part of the sale of an LCD panel manufacturing plant in Suzhou, China. At the time, the company was winding down LCD production in China. The sale of the stake to Samsung Electronics represents a 50% return on the initial investment.

For Samsung Display, the transaction means the sale of an asset that became less important after the company exited LCD panel production and shifted to high-quality OLED displays. TCL CSOT is a major Chinese display manufacturer with several LCD panel production lines.