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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] Gaon Cable has announced a strategic move to acquire 100% ownership of its U.S.-based power distribution cable subsidiary, LSCUS, as part of its efforts to strengthen its local operations.
On November 19, Gaon Cable disclosed that it would raise approximately ₩2,042 billion through a third-party allocation of new shares. The recipient of the newly issued shares will be LS Cable & System, which will purchase 6.6847 million common shares at ₩30,542 per share.
LSCUS is a joint venture between LS Cable & System (82% ownership) and Gaon Cable (18% ownership). Gaon Cable's board of directors approved the acquisition of LS Cable & System's 82% stake in LSCUS through a capital contribution of shares.
Founded in 1947 as the first domestic cable company in Korea, Gaon Cable achieved ₩1.4986 trillion in revenue in 2023. The company has set a target of ₩2.5 trillion in revenue by 2025, driven by expanded operations in North America and a diversified portfolio.
Through this acquisition, Gaon Cable plans to expand its business in the U.S. market, including renewable energy, power grid contracts from the U.S. Department of Energy, and plant projects, while strengthening its localization strategy. Additionally, the company aims to leverage the technical expertise and collaboration with its parent company, LS Cable & System, to boost its high-voltage cable business and enter the submarine cable market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
