SEOUL, KOREA - LG Electronics has announced that its board has approved an agreement to exchange LG Electronics' PCB division with its affiliate LG Micron's plasma rear panel division. This restructuring agreement will reportedly improve efficiency and raise equity for both companies.

According to the agreement, the transfer and acquisition will take place on May 1 and will include assets, liabilities and human resources. Accounts receivable, accounts payable, and some real estate will be excluded.

LG Electronics sites the increased efficiency and cost effectiveness of producing both plasma display panels and rear panels together as its reason for the move. LG Micron will reportedly boost its efficiency as well, by producing components in house, once it acquires LG Electronics’ PCB division.

LG Electronics is the largest stockholder of LG Micron. This agreement will increase LG Electronics’ stake in the LG Micron from 36% to 55%t.

On May 1, LG Electronics will transfer $141.1 million of assests to LG Micron, which includes two PCB manufacturing facilities in Chungju and Osan, Korea, as well as property, equipment and machinery.

The agreement will be brought before shareholders of LG Electronics and LG Micron at respective shareholder meetings for approval.