LG to buy 500 billion won worth of shares in 2 affiliates
LG said Thursday it will buy a combined 500 billion won ($375.9 million) worth of stake in its home appliances and chemical units from November as part of efforts to increase their corporate value.
LG plans to purchase 200 billion won worth of shares in LG Electronics and 300 billion won worth of shares in LG Chem on two occasions, the company said in a regulatory filing.
If the purchase is completed, LG's stake in LG Electronics will increase to 31.59 percent from 30.47 percent, and interest in LG Chem to 31.29 percent from 30.06 percent.
"The stake increase is aimed at maintaining stable management control and enhancing the profitability of LG," the company said.
LG plans to announce its plan to boost its corporate value in the fourth quarter.
Starting this year, the company has been giving out half-year dividends to its stakeholders to strengthen shareholder value. (Yonhap)
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