LG Display Co., a major flat screen supplier, said Thursday it has sold its facilities in China to a subsidiary of Chinese tech giant TCL Group for 2 trillion won (US$1.5 billion) as part of its business reorganizing effort.

In a regulatory filing, the company said it has signed an agreement to transfer its stake in its liquid-crystal display (LCD) panel and module factories in Guangzhou, China, to China Star Optoelectronics Technology, following approval from its board of directors.

The deal is expected to be completed by March 31, 2025, according to the company.

LG Display had held an 80 percent stake in the LCD plant and a 100 percent stake in the module factory.

The sale is part of the company's broader strategy to shift its focus from the increasingly competitive LCD market to its organic light-emitting diode business, which has become a key growth area. (Yonhap)