LG Chem recently announced its intention to spin off the battery division, and the second largest shareholder, the National Pension Service, opposes it.
At the general shareholders' meeting the day after tomorrow (the 30th), which will deal with the agenda, a vote confrontation will be noticed.
LG Chem's second-largest shareholder National Pension decided to oppose the spin-off of LG Chem's battery division by holding a trustee committee.
The National Pension Service said, "We agree with the intention of the division, but we judged that there is a risk of damaging the shareholder value of the National Pension, such as the possibility of diluting the value of the stake."
When LG Chem held an extraordinary general meeting of shareholders the day after tomorrow to deal with the agenda, it was scheduled to establish a subsidiary company on the 1st of next month.
However, as the National Pension Service, which holds about 10% of LG Chem's shares, professed no vote, the uncertainty about passing the split agenda also increased.
In order for the division to pass, consent of at least two-thirds of the shareholders present and one-third of the total number of shares incurred is required.
Since the announcement of the company's spin-off, individual investors have opposed the stock price decline due to the spin-off of the core battery sector.
The National Pension Plan's decision overturned the votes of major domestic and foreign voting advisors, including ISS, Glass Lewis, and Korea Corporate Governance Service, the world's largest voting advisors.
If the national pension was in favor, it was expected to pass smoothly, but with this resolution, the votes confrontation will be fierce until just before the shareholders' meeting.
LG Chem said it was regretful about the opposition to the National Pension Plan and said it would actively communicate with the shareholders' meeting.