LG Electronics, LG Info merge

LG Electronics, LG Info merge

SEOUL (Reuters): South Korea's LG Electronics said on Thursday it has endorsed a merger plan with affiliate LG Information & Communications at a board meeting.

LG Electronics said in a statement its board had approved exchanging one common share of LG Information for 2.12 LG Electronics' shares. The tie-up is subject to approval by a general shareholders' meeting slated for July 21, with the aim of completing the merger by Sept. 1.

LG Electronics will also cancel its 27.1 percent stake, or 8.37 million shares, in LG Information in an attempt to shore up the stock price of the latter.

In doing so, LG Electronics will convert the 27.1 percent stake in LG Information into shares of LG Electronics at 65,500 won each, totaling 548.5 billion won, before retiring all of its equity in the affiliate. The price is based on the Wednesday's closing price of LG Information.

Their consolidated shares will then be listed on the Korea stock exchange on September 19.