LS Cable & System is slated to sell a 49 percent stake in its subsidiary LS Alsco to local private equity fund Keistone Partners with the aim of securing capital to foster its electric vehicle parts business, according to a regulatory filing on Wednesday.
The company will retain a 51 percent stake in LS Alsco and the sale is expected to be fetch 30.9 billion won ($27 million).
LS Alsco, which specializes in aluminum, will expand its business into related materials for EV parts.
LS Cable & System plans to foster LS Alsco with the funds it raises through the stake sale and also plans to list it in a few years.
“We expect that aluminum will be a key material for EV parts in the future as light weight is emerging as a key issue,” said a spokesperson of LS Cable & System.
According to the firm, LS Alsco is the only local company that has received a serial number from the US Aluminum Association and is known for the development of new materials with corrosion resistance and high intensity.
The firm is fostering its EV parts business by running battery parts plants in Korea, Poland and China.
By Shin Ji-hye (firstname.lastname@example.org)