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On the morning of the 30th, LG Chem held an extraordinary general meeting of shareholders at the LG Twin Tower in Yeouido, Seoul, and decided to split the battery division (batteries).
77.5% of the total shareholders attended the shareholders’ meeting and 82.3% of the attending shareholders agreed. In terms of all stocks, 63.7% agreed. In the case of business division, at least one third of the total issued shares and at least two thirds of the shareholders participating in the total number of shareholders must agree as a special resolution.
Although the National Pension Service and the majority of national minority investors voted against, it is interpreted that the approval was approved by foreign investors, representing 40% of LG Chem’s shares. Currently, the main shareholders, such as LG Corp ., they own 30% of the LG Chem shares and approximately 10% of the National Pension Plan, and 8% of the national institutional investors and 12% of the individuals.
.JPG "30일 오전 LG화학 신학철 부회장이 임시 주주총회 성립을 선포하고 있다. 사진/LG화학")
On the morning of the 30th, LG Chem Vice Chairman Shin Hak-cheol proclaims the establishment of an extraordinary general meeting of shareholders. Photo / LG Chemistry
Based on the results of this extraordinary shareholders meeting, LG Chem plans to launch a new corporation, ‘LG Energy Solutions (provisional name)’, dividing the battery division in December. The scheduled registration date for the division is December 3. The spin-off company is a wholly owned subsidiary of LG Chem and will be established as a company with a capital of 100 billion won. Last year’s sales of the physical battery division totaled 6.7 trillion won.
The reason LG Chem decided to phase out the battery business is because the electric vehicle battery business is growing rapidly and has to finance investments in facilities of more than 3 trillion won per year. LG Chem’s net debt has now increased to 8 trillion won due to an increase in the amount of investment in the electric vehicle battery plant facilities, and the debt ratio has exceeded 100%. Physical spin-off is advantageous in securing new investments, as new corporations may be listed in the future.
Moving forward, LG Chem plans to expand the spin-off company’s investment to increase the sales of the newly established subsidiary to more than 30 trillion won by 2024 and promote it as the world’s best battery-focused energy solutions company.
In addition, it has differentiated competitiveness in the field of the ‘E-Platform’ that provides various services throughout the life of the battery, such as care, leasing, charging and reuse of the battery, as well as manufacturing and sale of materials, cells and battery packs. He plans to promote it as an energy solutions company.
In addition, with the decision to divest, LG Chem hopes to ensure global number one competitiveness by expanding investment in the battery business and reducing the financial burden on other sectors such as petrochemicals and advanced materials.
Shin Hak-cheol, chief executive officer (CEO, vice president) of LG Chem, said at an extraordinary general meeting on the day that “the battery industry is expected to grow tremendously, while not only existing competitors but also automakers they are moving forward in the battery business. ” “It is necessary to establish a management system optimized for the characteristics of the battery business.” He then emphasized that “to further solidify the position of the super-gap in the market.”
Reporter Kim Ji-young [email protected]
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