LG Electronics to take entire stake in LG Ads by 2026 Minority shareholders in TV data company has right to sell stakes
Translated by Ryu Ho-joung 공개 2021-12-07 08:07:36
이 기사는 2021년 12월 07일 08:05 thebell 에 표출된 기사입니다.
South Korea’s LG Electronics is expected to own a 100% stake in LG Ads, formerly known as Alphonso, in the next five years as minority shareholders in the US-based TV data company have put options enabling them to sell their stakes to LG Electronics’ US subsidiary.In January LG Electronics acquired 56.5% of Alphonso for $80 million through one of its US subsidiaries, Zenith Electronics LLC. The deal included a put option that enables the owners of the remaining 43.5% can sell their stakes to Zenith Electronics for three years starting from 2024, LG Electronics said on Friday.
Under the shareholder agreement, the minority shareholders in Alphonso – now rebranded as LG Ads – can sell one-third of their stakes in the company to Zenith Electronics through a tender offer for 20 business days from March 31, 2024; two-thirds of their stakes for 20 business days from March 31, 2025; and their entire stakes for 20 business days from March 31, 2026.
The purchase price will be paid in cash, and will be the greater of the per share price based on the company’s value or the fair value of the stock.
LG Ads’ board of directors will decide the fair value of the company’s shares. But if agreement cannot be reached, the fair value will be estimated by two accounting firms, which are selected by directors representing the minority shareholders and Zenith Electronics. If the difference between the estimates is less than 10%, the average will be determined as the fair value. Otherwise, a third accounting firm will be hired to conduct another valuation, and the average of the two closet estimates will be used as the fair value.
Most of the minority shareholders are said to be the company’s existing management, including co-founder and chief executive officer Raghu Kodige and co-founder and executive chairman Ashishi Chordia.
It is likely that the put option agreement will motivate the management team to strive to increase the company’s value because this will lead to a higher price for shares subject to tender offers.
It is also better for LG Electronics to own a 100% stake in LG Ads as the US company’s TV data analysis capabilities have great potential to create synergies with the South Korean consumer-electronics giant’s existing businesses by better targeting North American consumers.
Meanwhile, LG Electronics is also said to be considering an option to take LG Ads public in the US. The put option agreement will expire if a listing happens. (Reporting by Choong-hee Won)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 경남제약 품는 휴마시스, 유통네트워크·진단키트 '시너지'
- [Company Watch]글로벌텍스프리, 프랑스 자회사 '적자 전환'
- [Red & Blue]'주목도 높아지는 폐배터리' 새빗켐, 침묵 깨고 반등
- [HLB '리보세라닙' 미국 진출기]시장 우려 불식 나선 진양곤, 갑자기 마련된 기자회견
- 효성화학 특수가스 사업부, '경영권 지분 매각'으로 선회
- 한양, 만기도래 회사채 '사모채'로 차환한다
- 동인기연, 'GS 출신' 30년 베테랑 전호철 상무 영입 '성장 방점'
- 에스트래픽, 적자 '일시적 현상'... 2분기 수익개선 기대
- [Company Watch]'자회사 회생신청' 투비소프트, 성과 없는 신사업
- '크라우드 펀딩' 와디즈, '테슬라 요건' 상장 추진