LG Chem confirmed the spin-off of the battery business after twists and turns.
Despite the opposition of some minority shareholders and the second-largest shareholder, the National Pension Service, we won the vote at the general shareholders' meeting, and the stock price fell more than 6%.
This is reporter No.
LG Chem's proposal to split the battery business has been passed smoothly.
82.3% of the total number of attending stocks and 63.7% of the stocks with voting rights agreed to split the battery business into a 100% subsidiary.
[Shin Hak-cheol/LG Chemical CEO: I am proclaiming that it was approved as the original plan.] In the
pre-voting, it is interpreted that there were more votes in favor of foreigners and institutions.
On December 1st, LG Chem will launch a new corporation'LG Energy Solutions' dedicated to the battery business.
The goal is to reduce the financial burden of LG Chem, which is engaged in various businesses such as petrochemicals and advanced materials, and to attract new investments necessary to expand the battery business, and grow into a company with sales of 30 trillion won by 2024.
Disclosure and sale of shares are discussed as methods of attracting investment.
Some minority shareholders, who were unable to hold shares of the new corporation for a week due to the physical split, still expressed strong discontent.
[LG Chemical Minority Shareholder: I don't have time to vote, and I didn't give it to you.
Where is this falsehood?] The
share price of LG Chem fell by more than 6% on the news of the spin-off.
Although LG Chem succeeded in distributing the battery after twists and turns, the burden of proving the controversy over the decline in shareholder value, which was opposed to the national pension system, was put under pressure.