LG to buy 24.7% stake in trade arm

LG Corp., the holding firm of LG Group, said Thursday it has decided to purchase a 24.7 percent stake in a trading unit to renovate its governing structure.

Under the plan, LG will purchase privately-owned shares of LG International from shareholders, including LG Group Chairman Koo Bon-moo.

The deal is estimated at 296.7 billion won ($265 million), with the price per share standing at 31,000 won.

The move came amid criticism that LG did not include affiliates with major private shareholders under the holding firm. The purchase will meet the legal requirement of 20 percent needed to include a listed affiliate under the holding-firm structure.

Koo owned a 2.51 percent stake in LG International, with his son Kwang-mo controlling 2.11 percent. The chairman’s brother Koo Bon-Joon possessed a 3.01 percent stake in the company. All of their shares are included in LG’s latest purchase.

YONHAP