LG Electronics will sell its car smartphone wireless charging business․ The price of the deal is 140 billion won (about $115.2 million). Lastly, the buyer is a South Korean circuit board manufacturer BH.
Last year, LG withdrew from its loss-making mobile phone business. The sale of the in-vehicle wireless charging unit is likely to allow the company to focus more on new businesses after it completes its restructuring.
LG Corp. has decided to sell the in-vehicle wireless charging unit within its Vehicle Component Solutions division to South Korea’s BH Corp. The latter is a well-known Korea Securities Dealers Association-listed smartphone components company. As various sources claim, the two sides reached a transaction price of 140 billion won (about $115.2 million). BH will buy the division through its BH EVS subsidiary, BH’s automotive electronics business subsidiary, which was launched earlier this month.
LG has long been recognized for its in-vehicle wireless smartphone charging business. Since launching the business in 2017, as a board member of the World Power Consortium (WPC), the company has led the international standard for this technology.
The South Korean company supplies wireless charging systems to global automakers including General Motors Co. Apart from a hit, the company is also using the technology in a self-driving concept car, which was showcased at CES 2020.
“I am aware that LG Electronics has secured orders for 200 billion won a year from existing customers by 2027,” said an industry source. “The buyer is set to enjoy stable profits, while the seller will be able to accelerate its reorganization through the deal.”
LG has been shutting down loss-making or no-prospect businesses recently, focusing on future businesses. Last month, the company announced a decision to withdraw from solar panel manufacturing in the face of deepening competition and sluggish sales.
On the other hand, the company is trying to find opportunities in new areas such as medical devices, blockchain-based software, and cryptocurrencies. Industry insiders speculate that LG Electronics may use the proceeds from the sale of wireless smartphone charging units for cars to acquire other companies.
As for the acquirer, founded in 1999, BH Corporation is a supplier of flexible printed circuit boards for smartphone displays to global mobile phone manufacturers such as Apple and Samsung. According to the financial report, BH earned an operating profit of 71 billion won in 2021, and its sales exceeded 1 trillion won for the first time. The company is currently looking to expand its business portfolio from smartphone parts to areas related to auto parts.