LG.Philips LCD Parent Companies Dumping Stock

LG.Philips LCD Co. Ltd. could soon become an orphan, as both of its parent companies have plans to lessen their stakes in the company. In a Registration Statement filed by LG.Philips with the U.S. Securities and Exchange Commission, LG.Philips LCD Co. Ltd. said it plans to sell off 26,850,000 primary shares of common stock in the form of American Depositary Shares (ADS). Parent company number one, Koninklijke Philips Electronics N.V (Philips), said it will sell approximately 6,710,000 secondary shares of common stock in the form of ADSs, with each ADS representing one-half of one share of common stock. Philips may sell all, or a portion of the common shares represented by the ADSs it intends to sell in this offering, and additional common shares, in a private placement in Korea, which will take place concurrently with this offering. ADVERTISEMENT Further, parent company number two, LG Electronics Inc., is also considering the sale of a portion of its interest in the thin-film transistor liquid crystal display technology player in the same private placement, the statement said. Both parent companies will have to decide on the number of shares to be offered. However, Philips and LGE intend to sell the same number of shares so that their respective ownership interest in the company following these concurrent sales will remain identical. The company will grant the underwriters an option to purchase approximately 4,470,000 additional primary shares of common stock in the form of ADSs to cover over-allotments, if any, it said. LG.Philips LCD plans to use the net proceeds from this offering to fund its capital expenditures in Korea.