LS Goes for Holding Firm
By Kim Hyun-cheol
Staff Reporter
LS Group, a former affiliate of LG Group, said Tuesday that the company will be divided into smaller units, under a holding company system.
A board meeting of the cable and metal goods maker decided LS Cable, one of the group's units, will be split into the LS holding company and two new corporations ― LS Cable for cable manufacturing, and LS Mtron for manufacturing parts for automobile and electronic goods.
The IPO of two new entities will channel cash to the holding company, so it can focus on creating new business models and trying large-scale M&A deals.
The holding company will be mainly financed from dividends from affiliated units and rent profits from LS Tower, its headquarters building in Seoul, the group said.