LS Group is planning to expand its partnerships for renewable energy business through an equity investment in KT Submarine (hereinafter referred to as “KTS”), which is part of the KT Group.
On October 11, LS Group announced that LS C&S had participated in the third-party-allotment recapitalisation of KTS and will acquire 16% of the total outstanding shares, or 4.04 million shares, for KRW 25.2 billion. Once the acquisition agreement is concluded, LS C&S will be KTS’s second largest shareholder behind KT.
An LS Group official stated, “LS C&S, a major subsidiary under the LS Group, will combine its submarine cable manufacturing technology with the construction engineering technology and vessel operating capability of KTS, and this will improve the company’s capability to receive orders for global projects.”
LS Group projects that the submarine cable market will continue to grow due to the growth in the offshore wind power generation market and increase in global internet use resulting from carbon neutrality policies that are being implemented worldwide.
Since Chairman Ja-Eun Koo assumed office, LS Group has focused on developing prospective future businesses by discovering hidden opportunities such as submarine cables and solar power generation in the renewable energy sector, and parts and materials for batteries/electric vehicles/semiconductors in other sectors.
KTS is a specialised submarine construction company founded in 1995 with the ability to take part in submarine optical fibre cable projects.
Image source: Courtesy of LS C&S
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