LG takes majority stake in Pantos Logistics
LG International has acquired a 51 per cent stake in Pantos Logistics after LG purchased 1.02m shares at a price of KRW314.7bn (US$291.7 million).
March 2, 2015
LG International has acquired a 51 per cent stake in Pantos Logistics after LG purchased 1.02m shares at a price of KRW314.7bn (US$291.7 million). The two companies already have a close working relationship, largely based on family network – Koo Jung-hwoi, the founder of Pantos, is the brother of Koo In-hwoi the founder of LG International.
LG played a key support role in Pantos’ growth from day one, by outsourcing its warehousing, shipping and handling operations. Consequently LG is said to account for over 60 per cent of Pantos’ volumes, making the two companies significantly intertwined.
In a statement LG said it, “expects to gain synergies such as the boosting of the logistical function in its resources and industrial-materials trading business, its logistical-function use, and its exploration of new business opportunities.”
LG said it also intends to diversify the geographic spread of Pantos beyond its traditional heartland in Asia Pacific. An LG official explained: “We plan to combine LG’s global capacity and Pantos’ logistics capacity to boost our business competitiveness and corporate value.”