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(Seoul=Yonhap Infomax) Eun Byul Yun – LS Corp. (KRX: 006260), a major South Korean conglomerate, announced it will participate in a rights offering by its subsidiary LS Cable & System Ltd., investing approximately KRW 150 billion ($115 million) to secure a manufacturing base in the United States.
LS Corp. said on the 26th that its board of directors approved the acquisition of 1,694,915 common shares of LS Cable & System at KRW 88,500 per share during a meeting held on the 25th.
This move follows LS Cable & System’s previously announced capital increase plan on October 29. The funds raised will be used to construct a submarine cable plant in the United States.
With this rights offering, LS Corp.’s total investment in LS Cable & System will reach KRW 772.78 billion ($594 million), slightly increasing its ownership stake from 92.31% to 92.52%.
Earlier in April, LS Cable & System began construction of the largest submarine cable plant in Chesapeake, Virginia. The facility will feature the world’s tallest 201-meter power cable production tower, a plant for winding and finishing cables, and dedicated port facilities. Completion is scheduled for 2027.
LS Cable & System expects the US submarine cable market to grow at an average annual rate of over 30% over the next decade and has decided on this preemptive investment to secure market leadership.
An LS Corp. official stated, “By participating in the rights offering rather than taking on debt, we aim to strengthen our financial structure while investing in high value-added businesses with strong growth potential. This will enhance the group’s future value and benefit shareholders.”
Meanwhile, LS Cable & System, along with key affiliates such as LS ELECTRIC Co. and Essex Furukawa Magnet Wire, plans to invest approximately $3 billion (KRW 4 trillion) in US power infrastructure by 2030.
ebyun@yna.co.kr
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