MUMBAI: Samsung Electronics and Sony Corporation have signed an agreement transferring Sony‘s share to Samsung in S-LCD Corporation. The two companies have entered into a new strategic agreement for the supply and purchase of LCD panels.

Under the agreement, Samsung will acquire all of Sony‘s shares in the joint venture giving the entire control Samsung. The transfer will involve an estimated $939.6 million (KRW 1.08 trillion) to be paid to Sony by Samsung.

The agreement also allows Samsung and Sony to continue co-operative engineering efforts focused on LCD panel technology.

Established in April 2004, S-LCD has delivered cost-competitive LCD panels to both of its parent companies. In order to respond to the challenging conditions in the market and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance.

For Sony, this transaction will enable it to monetise its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.

The share transfer and payment are targeted to close by the end of January 2012, subject to necessary approvals from regulatory authorities.