■ Will maximize synergies through independent operation and cross-utilization of leading technologies  
■ Will secure differentiated competitiveness in global cable markets by sharing world-class competencies
 
Anyang, January 24, 2018 - LS Cable & System decided to transfer Gaon Cable, LS Group’s affiliate, to its subsidiary. 
 
LS Cable & System has signed a contract to acquire 31.59% (1,314,336 shares) of the 37.62% equity of Gaon Cable held by individual major shareholders, such as Chairman John Koo of LS-Nikko Copper. With the equity acquisition, LS Cable & System becomes the largest shareholder of Gaon Cable.  
 
The price paid per share of Gaon Cable was KRW 23,050 (approx. $21.68) based on the closing price of the 24^th, which is when the contract was concluded. The total equity acquisition amounts to approximately KRW 30.3 billion (approx. $28 million).  
 
To finance the equity acquisition, LS Cable & System will sell approximately 7% (2,156,790 shares) of its 57% equity of LS Cable & System Asia to Chairman John Koo and other individual major shareholders. The price paid per share was KRW 6,450 (approx. $7) based on the closing price of the 24^th. The transaction amounts to approximately KRW 13.9 billion (approx. $13 million).  
 
LS Cable & System and Gaon Cable will be independently operated going forward but the companies will cooperate to produce synergies by securing cost competitiveness through joint negotiation when purchasing raw materials and cross-utilizing their leading technologies in R&D.  
 
LS Cable & System conducts business in over 100 countries around the world with a focus on extra-high voltage submarine and underground cables, which are high-value-added products. This is a global cablemaker of which overseas sales account for more than 60% of total sales. As for Gaon Cable, it conducts business mainly in the Korean market with low-to-medium-voltage and communication cables.  
 
Roe-Hyun Myung, CEO and President of LS Cable & System said, “We will be able to build differentiated competitiveness in the global cable market by sharing LS Cable & System’s global business competencies and experiences with Gaon Cable.”
 
LS Cable & System is strengthening its competitiveness through active restructuring, such as by taking over the power division of SPSX (Superior Essex, USA) and establishment of a subsidiary for electric vehicle parts (LS EV Korea) through a spin-off last year as well as taking a leading stake in Gaon Cable. In addition, with Gaon Cable, it has been working on an overseas project to establish LSGM (LS–Gaon Cable Myanmar), a company that will soon be a leading producer of power cables in Myanmar.