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(Tax Finance Newspaper = Reporter Min-kyung Jin) LG Chem has confirmed the ‘proposed split plan’ to separate the battery business.
Individual investors oppose the spin-off of the battery business, launching ‘panic cells’ one after another, and expressing the position that the national pension, LG Chem’s second largest shareholder, would act as the ‘proxy’, and it seemed which was approved as the original plan.
LG Chem announced on the 30th that a general meeting of shareholders held at LG Twintawon in Yeouido-dong, Seoul, approved the original plan to separate the battery business and place it as a 100% subsidiary. Consequently, on December 1, the provisionally named ‘LG Energy Solution’ will be launched.
To approve the shareholders’ meeting, at least one-third of all shares and more than two-thirds of the shareholders who attend the general meeting must approve.
Excluding 10.2% of the national pension, which has already announced its intention to vote against, only 3.7% of the issued shares with voting rights were also voted against electronically.
◇ Opposition to the second largest shareholder and nod to the ‘panic cell’ of individual investors
Previously, tensions arose when individual investors and the second-largest shareholder, the National Pension Service, voiced opposition to the split.
On the 27th, the National Pension Service officially announced on the 27th that it would include a “representative” in the LG Chem division plan. He said: “I agree with the purpose and purpose of the division plan, but we judge that it exists. the risk of damaging the value for the shareholders of the National Pension, such as the possibility of diluting the value of the capital “.
Individual investors were also highly motivated. LG Chem’s share price closed at 627,000 won, 39,000 won (5.86%) less than on the trading day before September 21, just after the announcement of the plan to divest the battery business.
On this day, individual investors netted 54.3 billion won, leading the downtrend. Considering that the sale amount on the 17th and 18th, which are the last trading days, was 148.5 billion won and 1170 billion won, respectively, it was 3.173 billion won sold in 3 trading days.
◇ It seems to have influenced the foreigners’ungpyo ‘
In general, the spin-off is seen as a good thing, as you can keep your current share of business shareholders. If LG Chem decides to split, individual investors will own both LG Chem and LG Energy Solutions (working name) shares as much as the number of shares they own.
On the other hand, the physical division is negatively accepted since it is considered that the value of the existing share capital is diluted if a certain business unit exits a private company and proceeds with a capital increase or establishment of a joint company.
As the majority of individual investors invested in LG Chem after seeing the battery business, they supported the spin-off method for owning LG Energy Solutions shares and opposed the spin-off. There were also requests for the Blue House to stop the LG Chemicals division.
However, the industry has noted that the spin-off is unlikely to be rejected unless strongly opposed by foreign investors with high stakes at stake. LG Chem shares are the second largest shareholder, with major shareholders such as LG with 30% (including preferred shares) and the National Pension Plan with 10.20%. Foreign investors own 40%, national institutional investors 8% and individuals 12%.
In the end, at the general meeting of shareholders, foreigners and institutional investors voted in favor of the original bill.
◇ Is it possible to appease angry ants? “It’s about to leave, but did they separate you?
LG Chem’s general meeting of shareholders is reported to have been criticized from the start.
Most minority shareholders complained to management that they were opposed to the plan.
One shareholder requested a compensation plan and said: “So far, LG Chem has invested in batteries with money earned in chemistry.”
Another shareholder asked: “Divide for financing, but good to go public or to go public for financing?”
◇ LG Chem, the environment of Ando … “Decision to avoid the deterioration of the financial structure”
Despite the wishes of many individual investors, LG Chem appears to be relieved.
LG Chem has repeatedly emphasized that the division of the battery business is a process to cover the investment cost of facilities of more than 3 trillion won per year in a situation where the electric vehicle battery business is growing rapidly.
It is a position that is necessary to raise funds through spin-offs to prevent the financial structure from deteriorating.
In fact, as the amount of investment in LG Chem’s electric vehicle battery plant increased, the current net debt increased to 8 trillion won and the debt-to-equity ratio also exceeded 100%.
Vice President Shin Hak-cheol also said in a message to shareholders: “LG Chem has maintained its position as a world leader for the last 25 years, but challenges such as the burden of the financial structure due to increased investment in facilities due to intensifying competition are challenging. “
He added: “We decided to divide the battery business to ensure competitiveness by establishing a structural system in the battery business.”
[조세금융신문(tfmedia.co.kr), 무단전재 및 재배포 금지]