LS Group Signs Partnership Agreement with KKR

LS Group signed an agreement on July 27 with Kohlberg Kravis Roberts (KKR), a leading global investment firm, under which KKR will become joint partner with LS Group affiliate LS Mtron in LS Automotive, an electrical auto parts maker for the global automotive industry, and will additionally acquire LS Mtron’s copper foil (CF) and flexible copper clad laminate (FCCL) businesses in the way of transferring the businesses.

The trade amount worth 1.05 trillion won (US$941.45 million) can change depending on the value of net assets at the time of closing the business transfer agreement, according to LS Group. .

Under the terms of the agreement, LS Mtron and KKR and LS will create a new joint venture holding company to manage LS Automotive. LS Mtron will maintain the control of the joint venture owning 53 percent of its voting shares while KKR will own 47 percent of the joint venture’s voting shares. As LS Mtron has a majority voting shares, LS Automotive will remain as an affiliate of LS Group and keep its name.

KKR will acquire a full ownership of LS Mtron’s CF/FCCL Business division in the form of business transfer. The business division will be launched as a separate company with a new corporate name. LS Mtron will focus more on strengthening the global competitiveness of its core tractor business.

An official from LS Group said, “Based on financial resources secured through the latest agreement, we will make an investment in our group’s core businesses such as electricity infrastructure and smart energy. We are also planning to expand our businesses to global markets in earnest for the group’s growth, advance our technologies and create more jobs.”

LS Group and KKR will complete the procedures for business combination declaration at home and abroad by early 2018 and strengthen communication between employees and customer companies to create a more stable management environment in the future.