S.Korea pension fund to oppose LG Chem battery spin-off plan
By Heekyong Yang
SEOUL, Oct 27 (Reuters) - South Korea's National Pension Service (NPS) will oppose LG Chem's 051910.KS plan to separate its battery business into a new company, the NPS said on Tuesday.
It cited concerns about damage to shareholder value, including the possibility of diluting the equity value.
LG Chem said in a statement that it very much regrets that NPS opposes the plan when most domestic and foreign proxy advisers including Institutional Shareholder Services back it, adding it will actively communicate with shareholders.
LG Chem, an electric car battery supplier for Tesla Inc TSLA.O and GM GM.N, said last month it plans to separate the business as the electric vehicle market takes off.
NPS, the world's third-largest pension fund with $689 billion in assets, was the second-largest shareholder of LG Chem with a 9.96% stake as of end-June, after LG Corp's 003550.KS 33.34% stake, a company filing showed.
(Reporting by Joyce Lee and Heekyong Yang; editing by Andrew Heavens and Jason Neely)
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