(Reuters) – U.S.-based hedge fund Whitebox Advisors LLC said on Tuesday LG Corp’s plan to spin off five affiliates into a new holding company next year would fail to create value for minority shareholders.
“The spin-off does nothing to address LG’s most pressing issue, which is the unprecedented discount at which the company trades relative to its assets and, accordingly, inferior return to shareholders,” Whitebox said.
South Korea’s LG Corp is led by Koo Bon-joon’s nephew Koo Kwang-mo, who took over as the LG Group chairman in 2018 after his father died.
(Reporting by Shradha Singh in Bengaluru; editing by Uttaresh.V)
