LG Chem unveiled a spin-off plan to remove only the battery division, the backlash was strong, saying that it did not consider the existing shareholders who invested in the battery growth potential.
LG Chem started to appease investors.
This is a report by Park Chan-geun.
problem of minority shareholders is the'material division' of the battery division.
This is due to concerns that if a new subsidiary is listed and raised funds, the stake in LG Chem will drop and the stakes of existing shareholders will naturally dilute.
As the controversy grew, LG Chem directly explained.
The company announced that it will take at least one year for the new subsidiary to go public, and that even after listing, LG Chem plans to hold at least 70-80% of LG Energy Solutions.
As LG Chem continues to have an absolute stake, the diluting shareholder value of existing shareholders is not a concern.
Rather, he added that the larger the battery division's growth potential by attracting large-scale investments, the greater the shareholder value of LG Chem.
[Hwang Yoo-sik/NH Investment & Securities Research Fellow: If you separate the battery division independently, you will attract investment money while the value is properly evaluated…
Business is ultimately a policy for shareholders.]
Shares of LG Chem, which plunged more than 11% over two days due to the sudden decision to spin off the battery business, rebounded in three days.
However, the reaction of minority shareholders is still cold.
Despite'appealing investors', individuals sold over 100 billion won of LG Chem shares for two consecutive days following yesterday.
In the midst of this, suspicion was raised that LG Chem leaked material division information to stock analysts and partners before the announcement.
The Korea Exchange said it was analyzing whether there was any transaction using material undisclosed information before disclosure.
LG Chem denied that there could be no prior leakage before public announcement.
(Video editing: Soyoung Lee, CG: Sungbeom Jang, Junho Lee)