Palliser Capital demands LG Chem fix market discount
Palliser Capital disclosed more than 1 percent ownership in LG Chem at a New York hedge fund conference on Tuesday. The London firm ranks among the top 10 investors and called out a 74 percent discount between market value and net assets. LG Chem trades at 28 trillion won despite holding 79 percent of LG Energy Solution, which is valued at 106 trillion won.
The activist investor pressed for board changes, capital return policies, and stock buybacks using shares of the battery unit. Founder James Smith urged the chemical maker to support President Lee Jae Myung’s Kospi 5,000 initiative through valuation reforms. Palliser previously targeted SK Square and Samsung C&T for shareholder returns.
Shares jumped 13 percent to close at 391,000 won on Wednesday, breaking above 350,000 won for the first time in 12 months. The stock had fallen to 181,500 won on May 26 amid weakness in petrochemicals. Parent LG Corp holds 34.98 percent while National Pension Service owns 8.64 percent of the company.
