SEOUL, March 13 (Reuters) - Shares in LG Display Co Ltd (034220.KS) (LPL.N) fell more than 7 percent on Thursday after Philips (PHG.AS) sold about $1 billion worth of shares in the South Korean flat screen joint venture.
LG Display, formerly LG.Philips LCD Co Ltd, dropped 7.31 percent to trade at 43,100 won by 0108 GMT, lagging the wider market's .KS11 0.9 percent loss.
Philips said on Wednesday it sold 24 million ordinary shares in LG Display raising net proceeds of about 680 million euros ($1 billion). A term sheet for the deal seen by Reuters said it sold at discounts of 4.8 percent to 8.1 percent to market prices.
“Shares are likely to fall in the short term as the sale prices came below market price,” said Park Hyun, an analyst at Prudential Investment & Securities. “The overhang concern will persist as Philips is expected to sell more LG Display shares this year, retaining only a 3-5 percent stake.”
The Dutch company has thinned its holding in LG Display, with the latest sale reducing its stake to 13.2 percent from 19.9 percent. Its South Korean partner LG Electronics Inc (066570.KS) holds 37.9 percent. The venture set out as a 50/50 partnership between Philips and LG Electronics in 1999.
A strong earnings outlook for liquid crystal display (LCD) makers has boosted LG Display shares. As of Wednesday’s close, its shares were up 22 percent since a low at the start of February, although they were still down 6 percent since the beginning of the year. (Reporting by Rhee So-eui; editing by Keiron Henderson)