The owner family of LS Group sold its entire equity in affiliate LS Eco Energy to secure 70 billion won. As Hoban Group bought equity in LS Co., the possibility of a management control dispute grew, and it appears they secured firepower to defend their equity.
According to the Financial Supervisory Service's electronic disclosure system on the 16th, eight members of the owner family, including LS Group Chairman Koo Ja-eun, disposed of all 1.93 million shares of LS Eco Energy they held (a 6.3% stake) through after-hours trading for 70 billion won.
Chairman Koo sold 247,820 shares (0.81%), and Chair Koo sold 401,340 shares (1.31%), respectively. LS ELECTRIC Chairman Koo Ja-kyun (267,550 shares), E1 Chairman Koo Ja-yong (267,550 shares), Chairman Koo Ja-cheol (197,550 shares), and Koo Eun-hee (447,020 shares) also disposed of all their equity.
Earlier in Aug., the owner family, including Chairman Koo Ja-eun, disclosed that they would dispose of LS Eco Energy equity via after-hours trading at 37,000 won per share through the 21st of this month. They said the purpose was to purchase equity in LS affiliates.
As Hoban Group accumulated equity in LS Co., raising the possibility of a management control dispute, many view the owner family's move as an effort to secure cash in response. Recently, Hoban Construction secured more than a 3% equity stake in LS Co., and Pan Ocean, an affiliate of ally Harim Group, also bought more than 76,000 shares (0.24%) of LS Co.
An industry official said, "It appears the owner family trimmed equity in noncore affiliates to increase their capacity to purchase equity in the holding company."