LS Cable & System buying 16 percent of KT Submarine

LS Cable & System engineers at the company's production plant for submarine cables [LS CABLE & SYSTEM]

LS Cable & System is buying 16 percent of Kosdaq-listed KT Submarine, a submarine cable supplier, for 25.2 billion won ($17.6 million), it announced Tuesday.

With the equity investment deal, LS Cable & System will become the second largest shareholder of the company following KT, which currently holds 36.92 percent of the stock.

LS Cable & System is seeking to enhance its capabilities in the submarine cable business, as the market is expected to grow with the expansion of the offshore wind farm sector and increasing internet traffic volumes worldwide.

LS landed a 350-billion-won deal to supply cable for an offshore wind farm project in the United States this year and also signed a long-term contract for submarine cables to Denmark’s Osted.

KT Submarine fell 1.74 percent in trading Tuesday,

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]