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Overwhelming approval after breaking expectations “Some individual shareholders and institutional investors also agree”
December 1 Elasticity to establish a new corporation ‘LG Energy Solutions’
Accordingly, LG Chem plans to launch ‘LG Energy Solution (tentative name)’ on December 1.
◆ Attendance rate of 77.5% … Officials who visited shareholders after giving the company class
According to LG Chem on the 30th, 77.5% of all shareholders attended the extraordinary general meeting of shareholders held at the Twin Tower in Yeouido, Seoul this morning, with 82.3% approving the shares present and 63, 7% approving the total number of shares issued.
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| [서울=뉴스핌] Reporter Yoonae Lee = LG Chem Vice President Shin Hak-cheol attended LG Chem’s extraordinary general meeting of shareholders held at LG Twin Tower in Yeouido on the 30th, explaining the background and purpose of the division. [사진=LG화학] 2020.10.30 [email protected] |
The spin-off proposal can only be approved with the consent of at least two thirds of the shareholders present and at least one third of the total number of shares issued.
An LG Chem official said: “The minimum approval rate is 66.7% compared to the shares present for the approval of the agenda, but the approval rate of the shareholders meeting is higher than 82.3%. % “.
He added: “In addition to around 30% of LG Corp. subsidiaries and 40% of foreign investors, some of the minority shareholders and institutional investors appear to have voted in favor.”
There was also a backlash from some minority shareholders. On this day, Mr. Kim Young-seok from Bangbae-dong, Seoul, who attended the company after paying a class to shareholders, met with reporters and said, “The method of dividing the material does not benefit existing shareholders of LG Chem. ” However, he added, “I only have 10 shares, so I don’t think it will affect the results.”
◆ Battery business, increased financial burden on rapid growth … Net debt of 8 trillion won
As a result of today’s shareholders meeting, LG Chem’s battery business is expected to gain further momentum.
On the 17th of last month, LG Chem announced the spin-off plan, saying: “The current moment when the rapid growth of the battery industry and the creation of structural gains in the electric vehicle battery sector are in full swing. heyday is the right time for the division of the company. ” It will be possible, and management efficiency will be further increased, so that corporate value and shareholder value can be raised to the next level. “
In fact, it is known that LG Chem had many concerns about the financial structure, as the battery business grew rapidly in a short period of time. On this day, he mentioned two important issues at the shareholders’ meeting: the burden of the financial structure and the limitations of growth due to the lack of financial resources.
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| [서울=뉴스핌] Reporter Hangyul Lee = Shareholders are entering LG Chem’s general meeting of shareholders held at LG Twin Tower in Yeouido, Seoul, on the morning of the 30th. At the general meeting of shareholders on that day, it will be decided whether to spin-off the corporation battery pack for LG Chem. 2020.10.30 [email protected] |
LG Chem explained, “As the scale of investment in facilities to expand production capacity in the battery division increased rapidly, the net debt increased to 8 trillion won and the debt ratio exceeded 100%.”
Then he appealed: “There is an investment imbalance between the business divisions due to limited financial resources, and if this situation continues, it could lead to a problem of weakening the competitiveness of companies with sufficient growth potential.”
◆ New ‘target’ corporation to achieve 30 trillion won in sales by 2024
LG Chem plans to establish it as the world’s best energy solutions company in the field of batteries by achieving sales of 30 trillion won by 2024 through a new corporation.
In the second quarter of last year, LG Chem laid the foundation for building structural profits in the electric vehicle battery business and achieved a record operating profit in the battery business. Currently, it has secured an order book of more than 150 billion won in the electric vehicle battery business. Expected sales of the new subsidiary this year are around 13 trillion won.
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| LG Twin Tower [사진=LG] |
The new subsidiary is expected to actively participate in the E-Platform field, which provides various services during the life of the battery, including the care, leasing, charging and reuse of the battery, as well as the manufacture and sale of materials, cells and battery packs.
“The reason LG Chem has continued to grow for the past 70 years is because it has been constantly changing in creative and challenging ways,” said Shin Hak-cheol, Vice President of LG Chem. “I have no doubt that this spin-off decision It will be another step to continue in the future. “He emphasized.
Vice President Shin said, “We ask for your support and encouragement so that LG Chem can move forward as one of the ‘World’s Top 5 Chemical Companies’ with this spin-off.”
