Philips exits LG j-v

Royal Philips Electronics is quitting its joint-venture flat-panel displays business with LG Displays. And it is losing cash on the deal, selling out for $884m (€630m), or a discount of about 6%-8% to its current share price.

The decision ends a 10-year relationship with LG, and comes about because of the glut in the industry which has already seen Pioneer quit the business.

Back on Jan 16 LG Display recorded its first loss in 7 quarters as wholesale prices for LCD panels tumbled 17% on average last year, and are predicted to fall another 34% this year.

The share disposal represents about 13.2% of LG Display’s issued share capital. Earlier this month LG firmly denied that it was itself planning to exit the flat-panel market.