LG shareholders today approved the company’s plan to spin off five subsidiaries. This is expected to allow it to focus on existing core businesses such as electronics, chemicals and telecommunications services.
Back in November last year, LG announced that it would spin off a new holding company and transfer its stakes in LG International Corp, LG Hausys Ltd, Silicon Works Co Ltd, LG MMA Corp and Pantos Logistics Co. The move marks the latest reorganization in one of South Korean family conglomerates passing to a new generation.
The plan was approved by 76.6% of shareholders attending the AGM, despite objections from hedge funds and the recommendation of proxies regarding the plan. The meeting was attended by just over 89% of all shareholders of LG Corp.
Critics of the plan believe that it does not address issues related to capital management and trading in the company’s shares at a discount to net worth.