LG Chem Sells 2 Trillion Won Worth of LG Energy Solution Shares to Improve Financial Structure

575 Million Shares in PRS Contract, Stake to 79.38%
Funds Secured for Debt Repayment and New Business Investments
Proactive Equity Adjustment Ahead of Global Minimum Tax

LG Chem will secure approximately 2 trillion won in funds by selling a portion of its stake in its subsidiary, LG Energy Solution.

On October 1, LG Chem announced in a regulatory filing that it will enter into a price return swap (PRS) contract using 5.75 million shares of LG Energy Solution common stock, valued at approximately 1.9981 trillion won. The scheduled disposal date is November 3. As a result of this contract, LG Chem's stake in LG Energy Solution will decrease from the current 81.84% to 79.38%.

PRS is a derivative contract based on subsidiary shares as underlying assets, where the company pays a fee to the securities firm during the contract period and settles the difference according to stock price fluctuations. This contract has a three-year maturity, and the reference price was set at the previous day's closing price of 347,500 won per share.

LG Chem plans to use the proceeds from the sale to improve its financial structure, including repayment of borrowings, and to invest in new growth businesses such as advanced materials and bio sectors. The company also explained, "In preparation for the introduction of the global minimum tax, this move will proactively adjust the parent company's equity ratio."