SKS Credit and Main Contract on the 23rd
SPSX Subsidiary SEABL Valued at 1 Trillion
Pursuing Listing on US or Korean Stock Market
LS Group affiliate, American cable company Superior Essex (SPSX), successfully completed a pre-IPO worth approximately 200 billion KRW (150 million USD) through a private equity fund management firm affiliated with SK Securities, LS announced on the 19th. This fundraising was secured in recognition of its capabilities in the telecommunications cable business. A pre-IPO is an activity to attract investment funds before listing on the stock market.
LS stated that SPSX plans to sign a main contract with SKS Credit, a private equity fund management firm affiliated with SK Securities, on the 23rd and complete the formation of a fund involving institutional investors such as banks. SKS Credit is a private equity fund management firm dedicated to investing in SEABL, SPSX’s telecommunications cable subsidiary. SEABL was evaluated to have a corporate value of approximately 1 trillion KRW (750 million USD) during this pre-IPO process.
SPSX intends to use the secured funds for debt repayment and business investments. There are plans to list SEABL on the New York or Korean stock exchanges. SPSX expects the growth potential of its telecommunications cable business to increase as demand for 5G (5th generation) mobile communication private networks grows, especially in smart factories, education, and healthcare sectors centered in Europe and North America.
SPSX is a company acquired by LS Group in 2008 and is headquartered in Atlanta, Georgia, USA. It operates in more than 10 countries across three continents including the USA, China, Germany, and Italy. Last year, it recorded sales of approximately 4 trillion KRW (3.02 billion USD). It is the world’s number one in coil sales and the fourth largest telecommunications cable company in North America. A coil is a component wound in the form of a coil in electric vehicle drive motors that converts electrical energy into mechanical energy. If the drive motor is the heart, the coil acts as the blood vessels of the heart.
LS Group views the North American region as a key base necessary to achieve its 'Vision 2030.' Vision 2030 is a plan to increase the group’s total asset size from the current 25 trillion KRW to 50 trillion KRW by 2030. LS Cable is increasing exports of general telecommunications cables (UTP) through its subsidiary LS Cable Asia. LS Electric is expanding related businesses by providing power solutions necessary for building battery factories in the United States.
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