LG Chem divests its battery business, tentatively names it LG Energy Solutions

On Friday, a source familiar with the matter at hand said, shareholders of LG Chem have approved a proposal by company to separate its battery business into a new company.

The development paves the way for its battery business, to potentially raise funds and go public to fund its costly capacity expansion. LG Chem supplies batteries to Tesla Inc and General Motors Co.

During the shareholder’s meeting, more than 82% voted in favor of the plan, said the source.

LG Chem declined comment.

LG Chem is said is launch its new unit on December 1. It will be its first wholly-owned subsidiary.

It has been tentatively named LG Energy Solutions.

Around 30% of the company’s shares is likely to be listed through an IPO in about a year.

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: