LG Chem Ltd. (Seoul, South Korea) announced that it has resolved a corporate spin-off plan focused on its battery business to raise corporate and stockholder value. Accordingly, LG Chem plans to receive approval from the extraordinary meeting of stockholders on October 30 and officially launch ‘LG Energy Solution (tentative)’ as a new corporation exclusively in charge of the battery business from December 1.
This will be a physical division in which LG Chem will possess all of the stocks issued by the new battery corporation and LG Chem will possess 100% of the non-listed shares of the new corporation.
Regarding this corporate spin-off, LG Chem said: “The corporate spin-off will make it possible to focus on the specialized business areas and enhance management efficiency, thereby upgrading corporate value and stockholder value.”
Regarding the physical division method that will be used, it was stated, “Improved corporate value through the growth of the new corporation will also have a positive impact on the mother company, and we also considered the advantages from the synergy effects of the two companies such as R&D cooperation as well as association of battery materials businesses such as anode materials.”