Sony and Samsung have signed agreements which will see Samsung acquire all of Sony's shares of S-LCD, the two companies' LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung.
Samsung will pay approximately KRW 1.08 trillion to Sony.
The companies have entered into a new strategic agreement for the supply and purchase of LCD panels.
Established in April 2004, S-LCD supplies LCD panels to both of its parent companies for large-sized LCD TVs.
The deal has been prompted by changes to the LCD panel and TV market and a need to be more competitive.
The share transfer and payment are targeted to close by the end of January 2012, subject to necessary approvals from regulatory authorities.
As a result of this transaction, a non-cash impairment loss of approximately JPY 66 billion is expected to be incurred by Sony in the third quarter of the fiscal year ending March 31, 2012, due to the reevaluation of its S-LCD shares.
www.sony.com
www.samsung.com