LG Corp said it is to increase its stakes in business units LG Electronics and LG Chem. It has allocated $149.9 million to buy stock in LG Electronics and $224.8 million for LG Chem, with purchases continuing until March 31 next year.
This move is expected to raise its stakes in the subsidiaries to 31.59% and 31.29%, respectively.
Analysts noted that these purchases could boost the shares, which are widely seen as undervalued despite positive earnings forecasts.
LG Electronics' net profit is expected to double in 2024, while LG Chem's profit is projected to rebound next year after a decline this year.