LG Display said Friday it picked its Chinese rival CSOT as a preferred bidder for its liquid crystal display plant in Guangzhou, China.

CSOT, a display-making subsidiary of China appliance giant TCL, is the world's second-largest LCD maker following its crosstown rival BOE.

LG said it plans to continue talks with CSOT on more detailed deal conditions.

The company did not elaborate on the deal size, but industry sources estimate the sale could be worth about 2 trillion won ($1.45 billion).

The Korean display maker has been seeking to sell off its Chinese LCD plant as it makes a strategic shift toward a more advanced and lucrative OLED business.

Several Chinese companies, including BOE, are said to have offered bids for the LG plant. Though each showed significant interest in the Guangzhou plant, CSOT was reportedly chosen due to offering a more favorable acquisition price.

In 2021, CSOT also acquired Samsung Display's LCD plant in Suzhou, along with related technology patents. Samsung also ditched its less-profitable LCD business.