LG Energy Solutions soon will become a wholly-owned subsidiary of LG Chem and then anyone may get a chance to become a shareholder.
More than 82% of LG Chem shareholders voted in favor of the plan to split the battery business into a new wholly-owned subsidiary, tentatively named LG Energy Solutions.
It means that on December 1, 2020, the new wholly-owned subsidiary will come alive and it will open the way to offer up to 30% of its shares in an initial offering at some point in 2021.
Since the battery segment is responsible for 42% of the revenues (at least in Q3) and it has become profitable and has a huge perspective to grow, it might be a very promising IPO.
Not all shareholders seem to be happy about the split. The second-largest shareholder - National Pension Service (NPS) with about 10% stake - was against the split-off (because the stock value of the remaining parts of LG Chem may go down, we guess).
The two advantages of the split will be better, more-focused management and broader possibilities to raise capital for further growth.
Anyway, LG Chem has EV manufacturing plants in South Korea, China, Poland and in the U.S. with several new projects under construction simultaneously. The annual output may exceed 260 GWh of cells around 2023 in a race to become a larger battery supplier than CATL and Panasonic.