Other corporations are reported to have purchased LS equity for 20 consecutive trading days. Other corporations refer to general companies not registered as investment institutions. With Hoban Group reportedly acquiring about 3% of LS equity, it seems likely that they may have initiated additional purchases.
According to the Korea Exchange on the 13th, other corporations net-purchased 10.4 billion won worth of LS stock on that day. Other corporations have been buying LS stocks daily since the 13th of last month. Even from the beginning of this year, they have been net buyers in 42 out of 46 trading days. The total net purchase amount during this period is 114.1 billion won, and the total number of shares purchased is 999,422. This represents 3.7% of the total outstanding shares of LS.
Previously, Hoban Group acknowledged the fact of acquiring LS equity. They stated that they bought it for simple investment purposes, noting the growth potential of the power industry. However, interpretations have emerged in the financial investment sector suggesting that this may be a strategic approach to gain an advantageous position while their affiliates, Taihan Cable & Solution and LS Cable & System, are involved in a patent lawsuit. This is because shareholders who secure more than 3% equity under corporate law can request access to the company's books and documents.
LS Cable & System filed a patent lawsuit in 2019, claiming that Taihan Cable & Solution's joint kit product for bus duct infringes on its patents. A bus duct is a distribution means that delivers electrical energy to a building. A joint kit is a component that connects individual bus ducts to maintain current flow.
Following the first trial court, the second trial court also ruled in partial favor of LS Cable & System on that day. The compensation amount that Taihan Cable & Solution is required to pay to LS Cable & System increased from 490 million won in the first trial to 1.5 billion won in the second trial. Taihan Cable & Solution stated that it would review the judgment and decide whether to appeal.
Concerns about overlapping listings had previously caused the LS stock price to tumble, but this news acted positively. LS stock closed at 121,100 won in the KOSPI market that day, climbing 18.96% (19,300 won) from the previous day. This represents the largest daily increase since July 2023.