General – Submarine Cables
LS Cable & System from South Korea plans to become the biggest shareholder of KT Submarine Corp.
The company pursues an initial public offering of its battery materials subsidiary LS Materials.
LS Cable said Monday that it will acquire an additional 6.29 million shares of KT Submarine, a construction company specializing in submarine cables, for about 44.9 billion won ($34.3 million) by exercising a call option.
The company’s stake in KT Submarine will increase to 43.8 percent from 16.2 percent after the purchase. The share acquisition is scheduled for July 3.
LS Cable bought 4.04 million shares, or 15.57 percent, of KT Submarine in October from then largest shareholder KT Corp., for 25.2 billion won, becoming the second-largest shareholder. It had also acquired the right to exercise a call option that allowed additional purchase of KT’s 6.29 million shares worth 44.9 billion won, which led to the latest stake purchase.
Insiders note that the transfer of shares is aimed at further strengthening the competitiveness of the submarine cable business
LS Cable, in the meantime, will go ahead with the IPO of LS Materials. It plans to use the proceeds from the listing to develop LS Materials into a company specializing in eco-friendly energy materials and parts.