Alphabiz - LG CNS Shares Decline Despite Strong Earnings Momentum; Macquarie Block Deals Weigh on Stock

LG CNS

[Alpha Biz= Kim Kyo Sik] LG CNS shares have continued to slide despite solid earnings growth fueled by the company’s AI Transformation (AX) business and reduced related-party transactions. The primary driver behind the recent decline has been a series of large share disposals by financial investor Macquarie Asset Management.


According to industry sources on the 19th, Crystal Korea — the special-purpose company (SPC) established by Macquarie to acquire its stake in LG CNS — recently sold 7,403,680 shares (7.65%) through an after-hours block trade.


Following the sale, LG CNS shares plunged nearly 20% over a three-day period from November 4 to 6, dropping from 70,700 won to 57,200 won.


Macquarie executed the block deal at 60,242 won per share, raising approximately 446 billion won. Considering its initial acquisition price of 32,828 won per share, the sale generated an estimated capital gain of about 203 billion won.


Macquarie first acquired a 35% stake in LG CNS from LG Corp. in April 2020 for about 1.009 trillion won, becoming a key financial investor. The sale helped LG Corp. lower its ownership stake below 50% to mitigate regulations related to internal transactions.


Market analysts note that investor sentiment remains cautious due to concerns over additional stake sales.
 

“Although Macquarie executed another large divestment just three months after its previous sale, further disposal in the short term is unlikely given lock-up requirements,” a brokerage analyst said. “LG CNS’s earnings outlook remains positive, but near-term trading strategies should consider supply-demand pressure.”

Alphabiz 김교식 (ntaro@alphabiz.co.kr)