Australia-based private equity fund Macquarie has been chosen as the preferred bidder to acquire a 35 percent stake in LG CNS, LG Group’s holding company said Nov. 6.
LG Corp. didn’t reveal the bidding price from Macquarie, but industry observers estimate the deal could be worth around 1 trillion won ($863 million).
Once the deal is completed, LG Corp.’s stake in LG CNS, the group’s IT system unit, will be under 50 percent.
The proposed sale apparently came in response to the Fair Trade Commission‘s move to bolster regulations against intra-affiliate trading of family-controlled business groups.
Companies at which 20 percent or more of shares are owned by controlling families are subject to tougher regulations. The upcoming measure includes affiliates in which more than 50 percent of shares are owned by such firms.
By Ram Garikipati and newswires (email@example.com)