LG International Corp. will acquire a controlling stake in Pantos Logistics, a logistics firm that has handled overseas distribution for major LG Group companies including LG Electronics, LG Display, and LG Chem. LG International said in a regulatory filing on January 20 that it would buy a 51-percent stake (1.02 million shares) in Pantos Logistics at the cost of 314.7 billion won.
Pantos is a company established in 1977 by the family of late Koo Jung-hoi, the younger brother of Koo In-hoi, the founder of LG Group. Currently the company is owned by the younger Koo's spouse Cho Won-hee (50.86%) and her son Koo Bon-ho (46.14%).
Of the 49-percent stake that LG International won't purchase, 31.1 percent would be bought by LG Group executive Koo Kwang-mo and other individual investors while the existing largest shareholders Cho Won-hee and Koo Bon-ho will retain the 14.9-percent stake.
With the latest acquisition, LG International is expected to reap benefits such as new orders related to overseas logistics and synergy effects. An LG International official said, "We expect more cost advantages in using Pantos' crude oil terminals, port facilities, and large-scale warehouses rather than simple buying and selling of goods. We believe there would be significant synergies by combining LG's resource development and trading capabilities with Pantos' international logistic networks."