LG approves plan to split-off powertrain business

LG Electronics on Wednesday approved the motion to split off its powertrain business to form a joint venture with Magna International at a shareholders’ meeting.

The new subsidiary, called LG Magna E-Powertrain, will be formed on July. Manga will buy a 49% stake in the company.

The pair announced the plan for the joint venture last year.

They will spend around US$1 billion into the joint venture, they said at the time.

LG also approved its dividend plan for 1,200 won per ordinary share and 1,250 won per preferred share.