On Friday, shareholders of LG Corp shareholders approved the company’s plan to spin off five affiliates, which according to the South Korean company would allow it to focus on existing core businesses such as electronics, telecommunications services and chemicals.
In November 2020, LG had announced that it aims to spins off a new holding company and transfer its holdings in LG International Corp, LG Hausys Ltd, Silicon Works Co Ltd, LG MMA Corp and Pantos Logistics Co into the new entity.
The development marks the latest re-organization at one of the country’s family-led conglomerates as they pass to a new generation.
LG’s plan was approved by 76.6% of the shareholders at its annual general meeting on Friday, despite hedge fund opposition and proxy advisers’ recommendations against the plan, said LG.
A little more than 89% of all LG Corp’s shareholders attended the meeting.
According to critics of the plan, it did not address issues related to capital management and around company shares trading at a discount to their net asset value (NAV).
Some of LG’s other affiliates make batteries and displays used in General Motors, Tesla and Apple products.