S.Korea's LG shareholders approve plan to spin off affiliates

LX Hausys

26/03/2021 01:31

SEOUL, March 26 (Reuters) - South Korea's LG Corp
 003550.KS  shareholders on Friday approved the company's plan
to spin off five affiliates, which LG said would allow it to
focus on existing core businesses such as electronics, chemicals
and telecommunications services.    
    LG announced in November that it would spin off a new
holding company and transfer its holdings in LG International
Corp  001120.KS , LG Hausys Ltd  108670.KS , Silicon Works Co
Ltd  108320.KQ , LG MMA Corp and Pantos Logistics Co into the
new entity. 
    The move marks the latest reorganisation at one of the
country's family-led conglomerates as they pass to a new
generation.  urn:newsml:reuters.com:*:nL1N2IC0G4
    The plan was approved by 76.6% of the shareholders in
attendance at an annual general shareholders' meeting on Friday,
 LG said in a statement, despite hedge fund opposition and proxy
advisers' recommendations against the plan. Just over 89% of all
LG Corp's shareholders attended the meeting.  urn:newsml:reuters.com:*:nL1N2LB01L
     Critics said the plan did not address issues related to
capital management and around company shares trading at a
discount to their net asset value (NAV). 
    Some of LG's other affiliates make batteries and displays
used in General Motors  GM.N , Tesla  TSLA.O  and Apple  AAPL.O 
products.
    

 (Reporting by Joyce Lee; Editing by Ana Nicolaci da Costa)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))