Philips Electronics is selling about $2.2 billion worth of shares in flat screen maker LG Philips LCD Co Ltd, reducing its stake to about 20 percent, a term sheet said on Wednesday.

Philips, which had held 33 percent in the South Korean company, was selling 46.4 million shares at between 43,425 won and 44,550 won each -- representing a discount of 1 percent to 3.5 percent from Wednesday's closing share price.

Citigroup and Credit Suisse were the book runners for the deal.

Shares in LG Philips, the world's second-biggest maker of large liquid crystal display (LCD) televisions, have risen 36 percent in the last six months.

On Tuesday, the Korean company reported its strongest profit in 13 quarters, buoyed by tight supplies and growing demand that is expected to keep the LCD industry healthy through 2008.