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Local brokerages cast high hopes on LG spinoff


Local brokerages cast high hopes for LG spinoffs
Posted : 2020-12-21 16:31
By Nam Hyun-woo
Domestic brokerages are anticipating a positive impact after LG Group s planned spinoff of five companies under its wing, saying the changes will spur each firm to put greater efforts into improving their value.
U.S. hedge fund operator Whitebox Advisors earlier threatened legal action as part of its opposition to the plan on fears of discounts to the value of LG Corp., the remaining holding firm of LG Group after the spinoff.
The spinoff of the companies will have limited impact on LG Corp. s value, because existing shareholders of LG Corp. will own both companies shares, while the stock splitting ratio of LG Corp. and the new holding firm of the spinoffs is limited to 0.911 : 0.089, SK Securities analyst Choi Kwan-soon said, Monday. ....

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