In doing so, LG Electronics will convert the 27.1 per cent stake in LG Information into shares of LG Electronics at 65,500 won each, totalling 548.5 billion won, before retiring all of its equity in the affiliate. The price is based on the Wednesday's closing price of LG Information.Their consolidated shares will then be listed on the Korea Stock Exchange on September 19.LG Electronics said the integrated entity is forecast to have 16 trillion won in sales with assets of 11.94 trillion, capitalised at 871.1 billion won.

Digital TV and mobile services
"The merger is intended to enhance competitive edge and corporate value in tandem with a change in the electronics and telecommunications markets," said John Koo, vice chairman of LG Electronics, in a statement.The combined unit will concentrate on digital TV and mobile phone operations, specialising in cellular equipment, to prepare for forthcoming IMT-2000 services.

IMT-2000 is a family of standards for third-generation mobile communications services, which offer global roaming, high-speed Internet access, multimedia and real-time video-conferencing.LG Electronics said the tie-up was expected to generate synergies in research and development and marketing. LG Information will make use of the broader sales networks of the electronics' affiliate and then expedite its bid for the IMT-2000 project as well as developing global roaming technology.