Valuation: 47.7 billion, Samsung Display shares may be sold

On February 19, Samsung SDI, an important battery and electronic materials company under South Korea's Samsung Group, officially submitted a report to the board of directors, planning to sell all 15.2% of its shares in Samsung Display.

Based on book value, this share is valued at as much as 10 trillion won. This move is seen as a key measure taken by Samsung SDI to raise strategic investment funds and optimize its asset structure in the context of continued losses in its core battery business and deterioration of its financial structure.

Samsung SDI’s decision to sell its shares this time is closely related to the severe operating challenges it has faced in recent years. Financial data shows that the company fell into a loss for the whole year of 2025, with a net loss of 584.9 billion won and an operating loss of 1.72 trillion won, which is in sharp contrast to the profitability of the same period in 2024.

Its core battery business, especially the power battery segment for electric vehicles, has become the main drag on performance. Affected by multiple factors such as the reduction of subsidies in the European electric vehicle market, weak demand from strategic customers in the United States, and fierce price competition globally, especially from Chinese battery companies, Samsung SDI's power battery sales continue to be under pressure and its market share has declined.

Although the company's battery business revenue increased quarter-on-quarter in the fourth quarter of 2025 by strengthening overseas sales of energy storage systems, the business as a whole is still operating at a loss.

In order to cope with the difficulties and focus on the future, Samsung SDI is making a series of strategic adjustments, focusing resources on the core battery business, and actively making large-scale investments in areas such as energy storage systems, lithium iron phosphate batteries, and all-solid-state batteries regarded as next-generation technologies.

Previously, Samsung SDI had completed the sale of its polarizer business in 2025 and received considerable cash inflow to improve its financial situation. This plan to sell shares of Samsung Display, which has good profitability, is a continuation of this series of financial optimization and strategic focus actions.

Market analysts generally believe that Samsung Electronics, which holds the remaining 84.8% shares of Samsung Display, is the most likely takeover. If the transaction is successfully completed, Samsung Display will become a wholly-owned subsidiary of Samsung Electronics. This will significantly strengthen Samsung Electronics' direct control over the world's leading display panel manufacturer, allowing it to further integrate its advantages in high-end display technology while its semiconductor business hits new highs in revenue.