S-LCD Corp., a venture between Samsung Electronics Co. and Sony Corp., said Monday that it will reduce capital through a share cancellation as part of efforts to improve its capital structure.

In a regulatory filing, the venture said the number of its shares will be reduced to 660 million from the current 780 million, with its capital base to be cut to 3.3 trillion won ($3.05 billion) from 3.9 trillion won.

The venture equally owned by Samsung Electronics and Sony was set up in South Korea in 2004 to take advantage of rising demand for flat screens.

S-LCD’s sales reached 11.37 trillion won last year, up 15 percent from a year earlier. Net profit surged to 205 billion won from 16.3 billion won over the cited period, and operating income soared to 218 billion won from 8.6 billion won. 

(Yonhap News)