The battery maker will reduce its holding to 10.2% to fund US expansion amid weaker electric vehicle demand.
Samsung SDI will sell 13.09 million shares in Samsung Display, cutting its stake from 15.2% to 10.2% and raising $3.2 billion. The move aims to secure capital for growth investments, particularly in the US market.
The company faces declining battery electric vehicle sales in the US after policy changes removed purchase incentives of up to $7,500 per vehicle. Competitors LG Energy Solution and SK On are also shifting capacity from automotive batteries to energy storage systems.
Samsung Display will repurchase the shares as treasury stock, with the final valuation subject to adjustment during the process.