Park Ji-won is a writer for The Korea Times who has been covering a wide range of topics from Korea’s culture to its politics. An avid journalism enthusiast to the core, Ji-won brings a thoughtful and unique perspective to every topic she covers. On weekends, you'll often find her contemplating life’s purpose on a yoga mat — with a cup of quality tea in hand. A native Korean speaker by birth and fluent in English through her work, she went to college in Japan and is learning Chinese and French — hoping to add Polish, Russian and Thai to the mix.
LG International up on M&A speculation
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By Park Ji-won
By Park Ji-won
LG International share prices surged, buoyed by the news that it is considering acquiring one of nation’s leading logistics companies, analysts said.
LG International closed up 15 percent, or 3,200 won, at its daily limit-high of 24,650 won Friday. The benchmark KOSPI closed up 4.84 points, or 0.25 percent, at 1,941.32.
In a filing with the Financial Supervisory Service, the LG Group’s trading unit said it has hired a consulting firm to study buying Pantos Logistics.
LG said it has yet to make a final decision and will announce the details within a month.
Pantos Logistics is the nation’s largest freight logistics services provider. It has taken most logistics orders from LG affiliates and LG-related companies, which account for about 60 percent of its total orders.
It posted 2 trillion won in sales and 59.2 million won in operating profit last year.
“We don’t have much to say about the deal. However, we have sought acquisition deals which could create a synergy effect with our existing businesses, regardless of our financial situation,” LG International official Baek Kyung-suk said.
KB Investment & Securities expected that the acquisition, if realized, will have a positive impact on the company.
“LG’s move is considered part of its efforts to find a breakthrough amid its sluggish resources and energy exploration businesses in recent years,” KB Investment analyst Kim Hyun-dae said in a report.
Kim said profits of LG’s energy exploration business have been sluggish due to low coal prices.
“The acquisition will be positive as it will make up for uncertainties involving the energy exploration business. LG will be able to secure stable income sources from Pantos Logistics,” he said.
Pantos Logistics was founded in 1977 by Koo Jung-hwoi, younger brother of LG Group’s founder Koo In-hwoi. It operates its business in 40 countries.
Chairwoman Cho Won-hee, a daughter-in-law of Koo In-hwoi, is the largest shareholder with a 50.9 percent stake, and Koo Bon-ho, Cho’s son, holds a 46.1 percent stake.