RECO Changan Private Ltd agreed to acquire LG HOLDINGS (HK) LIMITED from LG Electronics Inc. (KOSE:A066570), LG Chem, Ltd. (KOSE:A051910) and LG International Corp. (KOSE:A001120) for CNY 8 billion on February 7, 2020. As per the terms, RECO Changan will acquire 41.2 million shares which is equivalent to 49% stake from LG Electronics.

LG Electronics plans to sign a stock purchase agreement this month. The sale will secure liquidity and fund future growth of LG Electronics. As of December 31, 2019, LG HOLDINGS (HK) LIMITED reported total assets of KRW 1,080 billion, total capital of KRW 859 billion, sales of KRW 49.6 billion and net income of KRW 44 billion.

The transaction is expected to be completed on April 22, 2020. Dae Shik KWON and Youn Nam LEE of Bae Kim & Lee acted as legal advisors to LG Electronics Inc., LG Chem, Ltd. and LG International Corp. PricewaterhouseCoopers LLP acted as an accountant to LG HOLDINGS (HK) LIMITED.

Ernst & Young acted as a consultant to RECO Changan Private Ltd. Savills Valuation And Professional Services Ltd. acted as an accountant to LG Electronics Inc. (KOSE:A066570), LG Chem, Ltd. (KOSE:A051910) and LG International Corp. (KOSE:A001120).