Vice Chairman and CEO Myung No-hyun of LS Corp. said on the 26th, "There are no plans for an initial public offering (IPO) of affiliates for the time being," adding, "Since we generated about 1.5 trillion won last year, there should be no major hindrance to management even without duplicate listings."
At the 57th regular shareholders meeting held at LS Yongsan Tower in Yongsan-gu, Seoul, on this day, Vice Chairman Myung said this in relation to the duplicate listings issue, noting that the company would faithfully implement the government guidelines.
Earlier this year, LS attempted an IPO of its affiliate Essex Solutions but halted it due to controversy over duplicate listings. The company had planned to raise about 500 billion won through the listing to invest in facilities in the United States, but fully scrapped the plan following concerns from minority shareholders about damage to shareholder value and criticism from political circles.
Vice Chairman Myung said, "LS is a capital-intensive industry, so it requires large-scale resource input, and it takes 10 years to recoup investment through the business," adding, "Large-scale investments such as LS Cable & System's submarine cable plant and LS MnM's battery materials are expected to be completed in three years."
He added, "This year's cash generation is expected to exceed 1.5 trillion won, so once the investments are completed, we expect no major issues financially or in terms of cash flow," and said, "Cash generated thereafter will be used more for internal reserves, new business investments, and shareholder dividends."
Regarding the timing and method of listing the subsidiary LS MnM, he explained, "In accordance with the investment contract terms, LS MnM will communicate smoothly and consult with JKL Partners," adding, "JKL is also not considering short-term recovery of investment funds." JKL Partners, a financial investor (FI), holds 25% equity in LS MnM, and the initial goal was to list by next September.
Vice Chairman Myung presented maximizing revenue in core businesses, early stabilization of new businesses, and AI-based work innovation as this year's management keywords.
He emphasized, "This year's business environment is seeing opportunities and uncertainties expand simultaneously," adding, "In response, we will preemptively manage risks and solidify local investments in the United States to secure the capabilities not to fall behind in competition with global corporations."
At this shareholders meeting, all agenda items were approved as originally proposed, including approval of the financial statements; approval of amendments to the articles of incorporation; appointment of inside and outside directors and Audit Committee Commissioners; and approval of the limit on directors' compensation.