 |
Samsung SDI (Photo courtesy of Samsung SDI) |
[Alpha Biz= Kim Jisun] Samsung SDI is moving to divest part of its stake in Samsung Display to secure investment funds and improve its financial structure, the company said on Wednesday.
Samsung SDI disclosed that it reported to its board plans to sell assets including its holdings in Samsung Display. The battery maker currently owns a 15.2% stake in the unlisted display unit. Based on Samsung Display’s book value of 64 trillion won at the end of 2024, the stake is valued at approximately 9.6 trillion won, or close to 10 trillion won on a book-value basis.
The decision is widely seen as an effort to raise funds for future investments amid a slowdown in the global electric vehicle market and weaker earnings. Delayed recovery in EV demand has weighed on battery shipments, while fixed-cost burdens have continued to pressure profitability.
Samsung SDI posted revenue of 13.27 trillion won last year and an operating loss of 1.72 trillion won. Its operating loss narrowed in the fourth quarter to 299.2 billion won, compared with 591.3 billion won in the previous quarter, partly supported by increased orders for energy storage system (ESS) batteries.
Despite near-term challenges, the company continues to invest in long-term competitiveness, including all-solid-state batteries, lithium iron phosphate (LFP) battery lines, and expanded production capacity in North America. Earlier this month, Samsung SDI Vice President Kim Yoon-tae, head of the finance team, said during a conference call that the company was exploring funding options, including the use of existing assets.
Looking ahead, Samsung SDI plans to convert part of its North American EV battery production capacity to ESS batteries and invest in a 46-millimeter cylindrical battery line in Hungary. Capital expenditure has been scaled back from 6.6 trillion won in 2024 to 3.3 trillion won last year, with this year’s spending expected to be around 3 trillion won.
If the stake sale is completed, Samsung SDI is expected to secure substantial investment funds while strengthening its balance sheet.
Industry observers have also raised the possibility that Samsung Electronics—which already owns 84.78% of Samsung Display—could acquire Samsung SDI’s stake, potentially making Samsung Display a wholly owned subsidiary.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
