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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] On the 1st, LG Corp., the holding company of LG Group, announced plans to acquire ₩200 billion worth of LG Electronics shares (approximately 2.03 million shares) and ₩300 billion worth of LG Chem shares (approximately 960,000 shares) through two rounds of open market purchases.
The share purchases are set to commence on November 1st.
Once the acquisitions are completed, LG Corp.'s stake in LG Electronics will increase from 30.47% to approximately 31.59%, and its stake in LG Chem will rise from 30.06% to approximately 31.29%. LG Corp. stated that the purpose of these share purchases is to "maintain stable management control and enhance the profit structure."
LG Electronics has been increasing its dividend payout ratio and implementing semi-annual dividends since this year to boost shareholder value. Meanwhile, LG Chem, as a key subsidiary, contributes significantly to LG Corp.'s dividend income.
This marks the second time LG Corp. has purchased shares of its subsidiaries since Chairman Koo Kwang-mo took office. The last instance was in April 2020, when LG Corp. acquired 7.05 million shares of LG Uplus for ₩90 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
