LG Chem offers 10,000 won dividends for shareholders
To placate anger over split-off of battery business
LG Chem will offer cash dividends over 10,000 won for ordinary shareholders for the next three years, the company announced.
The move is likely to placate the anger over the company’s decision to split-off its battery business.
LG Chem said the dividends will eliminate uncertainties over the split-off and increase shareholders’ value.
LG Chem will hold a shareholders’ meeting on October 30 to get the motion to split-off is battery business approved.
Company CEO and vice chairman Shin Hak-cheol said the split-off was crucial for the battery business to succeed in an environment where competition is intensifying and automobile makers are attempting to produce their own batteries, in a letter to shareholders.
LG Chem is planning split-off its battery business into a wholly owned subsidiary.
The company is a supplier to Tesla and other major automobile brands for their electric vehicles.