 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul – LG Chem Ltd. (KOSPI: 051910) is preparing to raise up to KRW 3 trillion (USD 2.2 billion) by leveraging its stake in LG Energy Solution Ltd. (KOSPI: 373220) through a price return swap (PRS) structure, according to investment banking industry sources on September 8.
LG Chem is reportedly working with multiple domestic securities firms to arrange the transaction, with each institution expected to underwrite around KRW 500 billion. While the exact terms are still being finalized, the total fundraising scale is expected to range between KRW 2 trillion and KRW 3 trillion.
As the majority shareholder, LG Chem holds 191.5 million shares (82%) in LG Energy Solution. Based on the September 8 closing price of KRW 343,500, this stake is valued at approximately KRW 65.9 trillion. If the PRS transaction reaches KRW 3 trillion, it is estimated that around 3–4% of LG Energy Solution’s shares would be used as the underlying asset.
This fundraising move underscores LG Chem’s efforts to strengthen its financial flexibility while maintaining its controlling position in LG Energy Solution.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
