June 14 (Bloomberg) -- LG Display Co., the world’s second-largest liquid-crystal display maker, and Iriver Ltd. will form a venture to make electronic book readers in China.
The companies will set up the venture, L&I Electronic Technology (Dongguan) Ltd., with initial equity capital of $5 million in Dongguan, Guangdong province, they said in separate filings today in Seoul. The venture aims to meet rising demand for devices for reading electronic books, Seoul-based LG Display said.
The company faces competitors including Sony Corp. and Amazon.com, which introduced the Kindle in 2007, in selling devices for reading books that have been digitized to appear on screens of the devices and on computers, including Apple Inc.’s iPad tablet.
LG Display will have 51 percent of the venture, while Iriver, a South Korean maker of digital music players, will have the remainder, according to the filings. The plan is subject to approval by the Chinese government and boards of directors, LG Display said.
Iriver jumped 11 percent to 5,050 won as of 12:13 p.m. on the Korea Exchange, while the benchmark Kospi stock index rose 1.1 percent. LG Display climbed 1.1 percent to 41,600 won.
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