Samsung SDI Sells 4.4 Trillion Won Stake in Samsung Display to Fund U.S. Plant and Other Investments

Samsung SDI is securing approximately 4.4 trillion won in investment capital by selling about one-third of its stake in Samsung Display.

Samsung SDI announced in a regulatory filing today (August 21) that it has decided to transfer 13,088,235 shares of Samsung Display to Samsung Display to secure financial resources for future growth engines.

This accounts for approximately 33% of its total holdings (39,856,654 shares), amounting to 4,449,999,900,000 won.

As a result, Samsung SDI's stake in Samsung Display will decrease from 15.2% to 10.2%.

Although Samsung SDI did not disclose detailed plans for the use of the funds, they are expected to be preferentially allocated toward facility investments, such as for Synergy Cells, the battery plant currently under construction in New Carlisle, Indiana, U.S.

Synergy Cells is a production corporation jointly established by Samsung SDI and GM in 2024, and Samsung SDI recently acquired all of GM's shares to secure sole operating rights.

This stake sale is interpreted as a reaffirmation of Samsung SDI's commitment to continuously expand investments to build a mid- to long-term growth foundation, supported by its recent clear earnings recovery trend.

Samsung SDI recorded revenue of 3,768.8 billion won and an operating profit of 203.8 billion won in the second quarter of this year, successfully turning a profit for the first time in seven quarters.

In particular, fueled by the recent increase in artificial intelligence (AI) data centers, demand for power energy storage systems (ESS) and uninterruptible power supplies (UPS) is growing steeply, while achievements are also being made in new markets such as humanoids, space, and aviation.

It is also known that investments in lithium iron phosphate (LFP) and solid-state battery production lines have been continuously underway since last year.

An industry insider said, "With the additional financial resources secured this time, alongside the funds secured through a 1.65 trillion won rights offering last year, Samsung SDI is expected to be able to make aggressive investments for future growth," adding, "It will also have a positive effect in terms of financial soundness."

(Photo courtesy of Samsung SDI, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.