Samsung SDI to Sell Stake in Samsung Display for $3.21 Billion to Fund Battery Expansion

SEOUL, Aug. 21 (Yonhap) -- Samsung SDI Co., a major South Korean battery maker, said Friday it will sell its stake in Samsung Display Co. worth about 4.45 trillion won (US$3.21 billion) to fund overseas facility investments for future growth.

Samsung SDI said in a regulatory filing that it plans to sell 13.09 million shares to Samsung Display, or about 33 percent of its 39.86 million-share stake in the display maker, and use the proceeds to fund investments aimed at securing future growth engines.

Following the sale, Samsung SDI's stake in Samsung Display will fall to 10.2 percent from 15.2 percent.

Samsung SDI did not disclose specific plans for the proceeds but is expected to use the funds primarily for facility investments, including at its Synergy Cells battery plant under construction in the U.S. state of Indiana.

Synergy Cells is a battery production joint venture established by Samsung SDI and General Motors Co. in 2024. Samsung SDI recently acquired GM's entire stake in the company, giving it full control of the operation.

Industry observers said the share sale can be seen as reaffirming Samsung SDI's commitment to expanding investments to lay the foundation for mid- to long-term growth, as the company has recently shown signs of sustained improvement in its earnings.

Samsung SDI reported 3.77 trillion won in revenue and 203.8 billion won in operating profit in the second quarter of the year.