LS to invest $102.8 mil. in LS Cable for US submarine plant project
This rendered image shows its submarine power cable plant to be built in the United States by the third quarter of 2027 / Courtesy of LS Cable & System
LS Corp., the holding company of LS Group, said Wednesday it has decided to invest 150 billion won ($102.8 million) in its cable manufacturing unit, LS Cable & System, to support the company's large-scale project to build a submarine power cable plant in the United States.
At a board meeting held the previous day, directors approved a plan to purchase some 1.7 million common shares in LS Cable at 88,500 won per share, LS Corp. said in a regulatory filing.
Following the purchase slated for Dec. 19, LS Corp.'s stake in LS Cable will rise to 92.52 percent from 92.31 percent.
The investment will be used to fund LS Cable's capital increase announced Oct. 29, which is designed to support its 1 trillion-won project to build a submarine power cable plant in Chesapeake, Virginia.
The plant, which broke ground in April, is slated for completion in the third quarter of 2027, with operations set to begin in the first quarter of 2028.
"The decision is aimed at stabilizing the balance sheet by participating in the capital increase rather than providing loans," an LS official said. "This investment will support the group's future growth and enhance shareholder value."