LS C&S establishes holding firm for EV business
[THE INVESTOR] LS C&S, the top domestic electric cable company, is considering setting up a holding company to further strengthen its electric car business, according to Maeil Business News on Sept. 8.
The firm plans to spin off its electric car business into LS EV Korea that will invest resources together with LSCW, a Chinese affiliate, into the new holding firm, tentatively named LS EV Solution.
LS C&S high-voltage harness.
LS C&S has already secured 700 billion won (US$620 million) funding from KDB Capital and Paratus Investment to sell a 47 percent stake in the holding firm to their jointly managed fund.
The firm is especially pinning high hopes on China, the world’s largest EV market. LSCW, established in 2003 in Wuxi, Jiangsu province, recorded sales of 125.2 billion won and operating profit of 8.4 billion won in 2016. It mainly produces automobile wires and cable modules -- key parts for EVs. The firm has also signed an exclusive contract for high-voltage harness modules with BDNT, a joint venture between China’s BYD and Daimler Chrysler.
LS C&S is also mulling a stock listing of LS EV Solution by 2020 that would help attract more investments. It has listed LS C&S Asia, which was established in Vietnam and Myanmar, on the Korean stock market.
By Alex Lee (email@example.com)