LG Chem to sell 2.5 tln-won stake in battery unit to boost shareholder value

SEOUL, Oct. 28 (Yonhap) -- LG Chem Ltd., South Korea's leading chemical company, said Wednesday it will sell 2.5 trillion won (US$1.87 billion) worth of shares in its battery unit to enhance shareholder value.

The company plans to sell 6.53 million common shares of LG Energy Solution Ltd. at Tuesday's closing price of 382,500 won per share on Nov. 27.

Following the planned sale, LG Chem's stake in the battery maker will fall to 76.59 percent from 79.38 percent.

In January, the company announced plans to reduce its stake in the battery unit to 70 percent over the next five years to improve its financial position, secure funds for investment in future growth engines and return value to shareholders through dividends.

LG Chem also plans to buy back 300 billion won worth of its own shares between Dec. 1 and May 31 for cancellation to bolster shareholder value.

The company, meanwhile, plans to pay 100 billion won in dividends to shareholders.