Given below are the LG Electronics? five major subsidiaries along with its stake
Subsidiary Name | Stake |
LG Display | 37.90% |
LG Innotek | 50.60% |
Hi Plaza Inc. | 100.00% |
Hi Business Logistics | 100.00% |
System Air-Con Engg Application | 100.00% |
Following are some of the Transactions involving above subsidiaries
Sr. No | Investor/Buyer | Target | Seller | Deal size (in $m) | Date | Comments | % Stock Purchased |
1 | LG Electronics Co. Ltd. | LS Mtron Air Conditioning Division | LS Mtron Ltd. | 139.50 | 10th March 2011 | The acquisition includes handover of Mtron?s Jeonju factory and research and development workers. The Air Conditioning Division generated revenue of KRW 220 billion in 2010. | |
2 | LG Display Co., Ltd. | Image & Materials, Inc | Daeduck Innopolis Patent Technology Commercialization Investment Fund, Innopolis Partners LLC | 32.52 | 4th March 2011 | ||
3 | LG Display Co., Ltd. | Gumi LGE TV factory and Gumi LGE learning center | NA | NA | 25th Feb 2011 | ||
4 | LG Display Co. Ltd. | New Optics Ltd. | New Optics Ltd. | 8.81 | Jul-08 | New Optics produces backlight units. | 36.70% |
Total No. of acquisitions data available from Jun-08 to till date is 13
Sources i) http://investing.businessweek.com
ii) LG Display SEC filings
Investor/Buyer | LG Display Co. Ltd. |
Target | New Optics |
Month of Acquisition | Jul-08 |
Size of the deal | $8.81 m |
Stake Acquired | 36.7 |
Years in Business | 6 |
NEW OPTICS Ltd. was incorporated on August 1, 2005 to manufacture back-light parts for TFT-LCD.
LG Display manufactures LCD displays for electronic devices.
Backlight Units is a major key component for LCD display in terms of percentage cost in the total price (30%) as shown in pie chart below.
"In order to reduce our component and raw material costs and our dependence on any one supplier, we generally develop compatible components and raw materials and purchase our components and raw materials from more than one source. However, we source the key components and raw materials from a limited group of suppliers in order to ensure timely supply and consistent quality."
"We maintain a strategic relationship with many of our key material suppliers, and from time to time, we make equity investments in our material suppliers as part of our efforts to secure a stable supply of key components and raw materials."
Manufacturer | BLU Procurement |
Samsung | Through subsidiary- Chilin Co |
CMO | Self-sufficiancy upto 70% |
Shortages were reported in 2010 for backlight unit which show that acquisition of strategic stake was required for securing supplies
Key Component Shortages Limiting Growth of LED Backlight Units for LCD TVs
"SANTA CLARA, CALIF., July 19, 2010?The LED backlight unit has emerged as a key factor in the TFT LCD industry, and is expected to maintain its growth momentum for the next several years. According to the latest DisplaySearch Quarterly LED Backlight Report, LED backlight shipments will pass those of CCFL backlights in all large-area TFT LCD panels and achieve 80% penetration in Q4?12. ""
i) Substitution of DBEF or BEF with diffuser films would reduce costs by more than 10%.
ii) By raising the CCFL luminescence efficiency 15%~20%, the backlight?s BEF can be replaced to reduce costs
Patents held by New Optics in 2010
Sr.No. | Country Code | DocNo | Title | Filed | Inventor |
1 | KR | 20080103869 | FRAME FOR BACKLIGHT UNIT | 5/25/2007 | cheon in gi |
2 | KR | 100894257 | GLASS FIBER REINFORCED FLEXIBLE MOLD FOR BARRIER RIB MANUFACTURE OF PLASMA DISPLAY PANEL AND FABRICATION METHOD THEREOF | 10/12/2007 | park lee soon |
3 | KR | 20100076154 | HARD COATING AGENT FOR MODIFICATING THE SURFACE OF TRANSPARENT PLASTICS AND METHOD FOR PREPARING FOR THE SAME | 12/26/2008 | lee kyu chang |
4 | KR | 20100127198 | HARD COATING AGENT FOR MODIFICATING THE SURFACE OF TRANSPARENT PLASTICS AND METHOD FOR PREPARING FOR THE SAME | 11/19/2010 | han sang do |
5 | KR | 100995243 | MANUFACTURING METHOD AND THAT CYLINDRICAL MOLD OF NANO PATTERN FORMATION CYLINDRICAL MOLD | 9/15/2010 | kim yu sung |
6 | KR | 20110030124 | ILLUMINATION DEVICE USE LIGHT GUIDE PANEL | 9/17/2009 | cheon in gi |
7 | KR | 101026497 | THE VACUUM CHAMBER INSIDE WHERE THE HIGH PRECISION STAGE IS INSTALLED AND COOLING DEVICE | 9/15/2010 | sin myeong dong |