SEOUL (Reuters) – South Korea’s LG Corp shareholders on Friday approved the company’s plan to spin off five affiliates, which LG said would allow it to focus on existing core businesses such as electronics, chemicals and telecommunications services.
LG announced in November that it would spin 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 move marks the latest reorganisation at one of the country’s family-led conglomerates as they pass to a new generation.
The plan was approved by 76.6% of the shareholders in attendance at an annual general shareholders’ meeting on Friday, LG said in a statement, despite hedge fund opposition and proxy advisers’ recommendations against the plan. Just over 89% of all LG Corp’s shareholders attended the meeting.
Critics said the plan 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.
(Reporting by Joyce Lee; Editing by Ana Nicolaci da Costa)