- 21Oct2013LS Cable & System to undergo spin-off
Cyprus (SPSX U.S. Holding) and its domestic real estate development subsidiary to be separated from LS Cable & System and recombined into LS I&D
LS Cable & System to focus on its core business for improved profitability
Newly formed LS I&D to focus on improving SPSX and securing real estate
Seoul, Korea, October 21st – LS Cable & System (President & CEO Jaeun Koo) called a board meeting on the 21st during which it was decided to separate the overseas investment division of CYPRUS, a U.S. subsidiary, and its domestic real estate development division. The two units will be combined to form a new company tentatively named LS I&D. When the spin-off is completed, LS Cable & System shareholders will be allotted shares of the new company in proportion to their existing ownership.
Through this move, LS Cable & System plans to improve its global competitiveness by focusing only on the company’s core businesses, namely submarine and extra high-voltage cables. In addition, LS Cable & System anticipates that the spin-off will strengthen the company’s investment capabilities for future growth while improving its financial soundness and profitability by reducing its debt ratio.
LS I&D will focus its management capacities on improving corporate value by accelerating the performance and structural improvement of Superior Essex Inc. (SPSX), a subsidiary that LS Cable & System acquired in 2008, and also on specializing in and implementing in full-scale the real estate development business that LS Cable & System has been promoting over the years. In the U.S. demand for winding wire, communication cables and power cables, the core businesses of SPSX, is expected to improve due to the increased demand for big data communications networks and the automobile industry recovery.
LS I&D will fully make use of the new changes in the management structure. “The key to this spin-off is to create a business structure for LS Cable & System with which we can break through the difficult situations the cable industry is facing at the moment, and also for each subsidiary to focus on their fields of expertise,” explained an LS Cable & System insider. “In the long run, we will be able to establish an environment for an IPO and asset securitization, and thus shareholder value will improve”
According to LSCNS