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A letter LG Chem Vice Chairman Shin Hak-cheol sent out to shareholders on Wednesday underscores the necessity of the split-off of the company’s battery business division. (LG Chem) |
LG Chem said Wednesday it will offer cash dividends of at least 10,000 won ($8.70) per common share over the next three years as part of an effort to promote shareholder value.
The South Korean battery giant last month decided to split off its promising battery business division as a wholly-owned subsidiary LG Energy Solution. The decision triggered fierce resistance from retail investors, many of whom invested in LG Chem for its battery business.
“To apply the same dividend criteria after the split-off, LG Chem plans to pay out at least 30 percent of its net income as dividends based on consolidated financial statements,” an LG Chem official said. In consolidated financial statements, LG Chem’s net income will be summed up with that of LG Energy Solution.
To soothe retail investors, LG Chem on Monday released a preliminary earnings report for the first time in its history. Also, LG Chem said last month it would maintain a dominant share of 70-80 percent of LG Energy Solution even after taking the subsidiary public.
The split-off awaits a final approval at a shareholders meeting which will be held at auditorium in the Twin Towers headquarters in Yeouido, western Seoul, on Oct. 30.
By Kim Byung-wook (
kbw@heraldcorp.com)
