LG considers selling stakes in IT arm: Report
Seoul, June 11 (IANS) South Korea’s major family-controlled conglomerate LG Group said on Tuesday it is currently considering selling stakes in its information technology (IT) arm LG CNS.
“We plan to sell LG CNS to beef up competitiveness, although nothing in detail has been decided yet,” an official from LG Group said.
The sale apparently comes in response to the Fair Trade Commission’s move to bolster regulations against intra-affiliate trades of family-controlled business groups, market watchers said.
Companies at which 20 per cent or more of shares are owned by controlling families are subject to
tougher regulations, Yonhap news agency reported.
The upcoming measure includes affiliates in which more than 50 per cent of shares are owned by such firms.
Accordingly, LG needs to sell more than 35 percent of its stakes in LG CNS to avoid the new regulations.