LG Chem to Sell 2.5 Trillion Won Stake in Battery Unit

LG Chem, a leading South Korean chemical company, announced its decision to sell a stake worth 2.5 trillion won (approximately $1.87 billion) in its battery unit, LG Energy Solution. This strategic move aims to optimize its investment portfolio and bolster shareholder value in a competitive market.

The company intends to sell around 6.53 million common shares at the closing price of 382,500 won per share on November 27. Following this sale, LG Chem's ownership in LG Energy Solution will decrease from 79.38% to 76.59%.

Earlier this year, LG Chem revealed plans to reduce its stake in the battery unit to 70% over the next five years. This initiative is part of a broader strategy to improve its financial standing, secure funds for future growth, and return value to shareholders through dividends.

In addition to the stake sale, LG Chem plans to buy back shares worth 300 billion won between December 1 and May 31 to further enhance shareholder value. The company also announced a dividend payout of 100 billion won to its shareholders, reinforcing its commitment to returning value amidst a challenging economic landscape.