Whitebox opposes LG’s decision

BENGALURU: US-based hedge fund Whitebox Advisors LLC said LG Corp’s plan to spin off five affiliates into a new holding company next year would fail to create value for minority shareholders.

“The spin-off does nothing to address LG’s most pressing issue, which is the unprecedented discount at which the company trades relative to its assets and, accordingly, inferior return to shareholders, ” Whitebox said.

South Korea’s LG Corp is led by Koo Bon-joon’s nephew Koo Kwang-mo, who took over as the LG Group chairman in 2018 after his father died. — Reuters