LG denies Google acquisition rumours

LG has denied that long-time Android partner Google was planning to buy a 35 percent stake of LG Electronics after rumour of the deal caused share prices to fluctuate.

Early Wednesday, a rumour surfaced that Google was planning to buy 35 percent shares -- worth around $2.3 billion -- of LG Electronics in a block deal to become its biggest shareholder ahead of LG Corporation, the parent company of LG Group affiliate.

LG Electronics share prices rose over 11 percent around 47,000 won ($40) in the two hours after the exchange opened.

Representatives of both LG Group and LG Electronics denied the rumours.

LG Electronics' shares recently hit a 12-year low, due to lower-than-expected second quarter estimates. Its latest flagship smartphone, the G4, has sold only 250,000 units, compared to rival Samsung's 1.3 million for the Galaxy S6 and S6 Edge, according to telco sources.

LG Display to invest $900 million in plastic OLED

LG Display, the display making affiliate of LG Group, will invest 1.05 trillion won ($902 million) in building a new factory line that will produce plastic organic light emitting diode (OLED) displays.

The display maker announced the plan in a regulatory filing on Thursday. The new line will be built at LG's existing factory at Gumi, Gyeongsang Province.

The size of the investment amounts to 8.9 percent of its owner's capital.

Plastic OLEDs are used to build flexible displays for smartwatches, among other uses -- LG Display supplies plastic OLEDs to Apple that are used in the Apple Watch.

The investment will be completed in June 30, 2017.

According to DisplaySearch, the flexible AMOLED -- active-matrix organic light emitting diode -- market will be worth $3.5 billion this year, and to grow to $4.8 billion by 2021.

The company posted revenues of 6.7 trillion won and operating profit of 488 billion won for the second quarter this year, up 12 percent and 199 percent respectively from a year ago.

LG said the rising panel sizes of TVs and high demand for small to mid-sized displays fueled the growth.

Source: ZDNet.co.kr