Macquarie unit ahead in LG CNS bidding
Published: 06 Nov. 2019, 20:05
LG Group, which holds an 85 percent stake in the IT software development affiliate, said on Wednesday that the investment unit was the preferred bidder for a 35 percent share.
In the competition for the stake, multinational investment firms such as KKR participated.
The tech-focused conglomerate has been forced to sell its holdings in LG CNS after Fair Trade Commission, an antitrust agency, cracked down on cross-shareholdings and unfair orders and deals among a group’s affiliates.
LG said the sale could help it avoid blame in the future.
“With the equity sale, LG’s holding in LG CNS is expected to be reduced to 50 percent, which will help the company stay away from any controversy over unfair inter-group businesses,” a spokesperson for LG said.
Macquarie’s expertise in infrastructure investment boosted the firm’s appeal, on top of the price offered.
“Macquarie Korea Opportunities Management suggested proposals for a mid-to-long term growth strategy of LG CNS,” the spokesperson said.
BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
with the Korea JoongAng Daily
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