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Photo = LS Cable & System |
[Alpha Biz= Kim Jisun] Hoban Group's acquisition of shares in LS Group's holding company, LS Corp., has drawn attention to the motives behind the purchase. While Hoban Group has stated that the acquisition was purely for investment purposes, some speculate that it may be a strategic move to gain an advantage in the ongoing patent lawsuit between its affiliate, Taihan Cable & Solution, and LS Cable & System.
According to the investment banking (IB) industry on Wednesday, Hoban Group has reportedly acquired approximately 3% of LS Corp.'s shares. Hoban Group cited the growth potential of the power industry as the reason for its investment.
However, market observers interpret the move as an attempt to keep LS Cable & System in check. Under corporate law, shareholders holding at least a 3% stake are entitled to request access to the company's books and records.
LS Cable & System filed a lawsuit in 2019, claiming that Taihan Cable & Solution's manufacturing and sale of the "bus duct joint kit" infringed on its patent rights. In the first trial, LS Cable & System won a partial victory, but both parties appealed, and the case is currently in the second trial.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
