LS Co., Ltd. said it will invest about 150 billion won by taking part in LS Cable & System's shareholder-allotted paid-in capital increase to secure a production base in the United States.
On the 25th, the LS board approved an investment to acquire 1,694,915 common shares of LS Cable & System at 88,500 won per share. When the paid-in capital increase is completed, LS's equity stake in LS Cable & System is expected to rise from 92.31% to 92.52%.
An LS official said, "This decision was pursued to stabilize the financial structure by participating in the paid-in capital increase, not through borrowing," and added, "Investing in high value-added businesses with strong growth potential is expected to enhance the group's future value as well as help boost shareholder value."
LS Cable & System plans to invest the funds secured this time in building a U.S. subsea cable plant. In April, LS Cable & System broke ground on the largest local subsea cable plant in Chesapeake, Virginia.
The company plans to build the world's tallest 201-meter power cable production tower, a plant that winds wire into finished products, and dedicated port facilities. LS Cable & System expects the U.S. subsea cable market to grow by more than 30% annually over the next 10 years.