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LG Energy Solution shares fall after LG Chem plans large stake sale

LG Energy Solution shares fall after LG Chem plans large stake sale

On Oct.

29, LG Energy Solution shares fell 7.06% in early trading in South Korea after its largest shareholder announced a major sale.

The seller is LG Chem, the battery maker’s parent company, which plans to sell about 6.54 million shares.

The shares are expected to be sold from Nov.

27 to Dec.

24, at a reference price of 382,500 won each, for about 2.5 trillion won in total.

LG Chem said the sale is intended to improve its financial structure.

Investors also have reason to worry about more sales because LG Chem has said it plans to gradually reduce its stake in LG Energy Solution to about 70% over roughly five years.

The prospect of further shares coming onto the market weighed on investor confidence; LG Chem shares also fell by more than 2% in early trading.

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