South Korean conglomerate LS Group will be spinning off its automotive and copper units through a 1.05 trillion won ($1.3 billion) complex business deal with U.S.-based private equity firm KKR & Co.
Under the deal, it will form a joint venture with KKR which will co-own LG Automotive Corp. LS Group will own 53 percent in the joint venture and keep the company as a unit. KKR will own 47 percent stake in the joint venture.
LS Group will sell the copper foil and flexible copper clad laminate business under LS Mtron to KKR.
The transaction is estimated at 1.05 trillion won, but the final figure may change based on net asset status at the time of completing the business transfer contract, said LS Group.
LS Automotive will maintain its nameplate, but LS Mtron’s copper foil and flexible copper clad laminate business will start as a new, independent entity under the American owner.
LS Mtron will focus on growing its key tractor business after completing the sell-off.
By Kang Doo-soon and Han Woo-ram
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]