[THE INVESTOR] LG Chem
, the chemical unit of LG Group, is seeking a merger with its drug-making sister firm LG Life Science
for business synergies.
According to news reports on Sept. 6, the two firms will put the merger plan up for vote during their separate shareholders meetings scheduled to be held on Sept. 9.
An LG Group official confirmed related talks were underway but said no details, including the timing, were decided.
On the day, the Korean Exchange asked the two listed firms to make an official announcement on the plan by 6 p.m. on Sept. 6.
Keen attention is being paid to their share prices.
LG Chem is trading at around 267,000 won per share with a market capitalization of 17.7 trillion won (US$16 billion). LG Life Science is trading at around 66,700 won per share with a market value of 1.1 trillion won.
The merger swap ratio is decided based on stock prices for three months before the merger.
LG Chem reportedly has cash reserves of 2 trillion won.
By Lee Ji-yoon (firstname.lastname@example.org