Philips Sells Stake in LG

Last week, Philips Electronics announced it has sold its remaining stake in LG Display Co., Ltd. to investors in a capital markets transaction. This transaction represents 13.2 percent of LG Display’s issued share capital, or 47.2 million of common stock, and reduces Philips’ holding to zero.

The transaction will provide Philips with net proceeds of approximately EUR 630 million, and is expected to result in a non-taxable gain of approximately EUR 70 million in the first quarter of 2009, which will be recognized in financial income and expenses.  In addition, this transaction is in line with Philips’ communicated strategy to dispose of its holding in LG Display in a structured and responsible manner.