LG to spin off five subsidiaries to focus on electronics
According to network sources, the South Korean company LG Corp shareholders have approved a plan under which five subsidiaries will be spun off from it. The company believes that this approach will focus on existing core businesses such as electronics and telecommunications services.
As a reminder, in November last year, LG announced its intention to establish a new holding company to transfer its stakes in LG International Corp, LG Hausys Ltd, Silicon Works Co Ltd, LG MMA Corp, and Pantos Logistics Co. Significantly, this move actually marks the latest reorganization in one of the country’s family conglomerates, moving on to a new generation.
According to reports, the plan to spin off the five subsidiaries was approved by 76.6% of LG shareholders who attended the annual meeting in South Korea today. It is noted that a high level of shareholder support was achieved despite objections from hedge funds and recommendations of trustees regarding the plan. In total, the annual meeting was attended by just over 89% of LG shareholders.
Some shareholders criticized the approved plan. In their opinion, it does not address some issues related to capital management and trading in the company’s shares at a discount to net worth.
