China Business News, 4/11/08
Chinese consumer electronics manufacturer Konka (200016.SZ, 000016.SZ) announced today that it is in discussion with LG Display (LGD) regarding the possible purchase of shares in LG Display's mainland China subsidiary, LG Display (Guangzhou). No agreement, however, has yet been reached, and the amount of investment and percentage of shares have not yet been decided. Xiao Qing, secretary of Konka's board of directors, revealed that Konka hoped to take a small stake, mainly for the purpose of maintaining a strong partnership with LGD.
During initial negotiations between the two sides, the stake Konka is considering was reported to be less than 5% of LG Display (Guangzhou)'s total shares.
Editor's note: Earlier this year, Konka competitor Skyworth also signed a deal to invest in LG Display (Guangzhou). For additional background, please see "LG LCD Factory Starts Production in Guangzhou" MD 4/10/08 issue.