한 · EN

LS Corp. acquires 49.9% of LS-Nikko Copper (LS MnM) 49.9% stake for KRW 933.1bn

SI Energy & Materials Copper smelting (non-ferrous metals)

Not yet reviewed: summarised from filings and press reports; figures may differ between reports. Please check the original sources.

Deal value
$644m
Stake
49.9%
Implied 100%
$1.3bn

Deal value ÷ stake (structure unconfirmed)

Revenue
$6.8bn

2021 · Multiple reports agree

Op. income
$244m

2021 · Multiple reports agree

Multiples
EQV/EBIT 5.3xPSR 0.2x

On implied equity value

Target
LS-Nikko Copper (LS MnM) 49.9% stake · Copper smelting (non-ferrous metals)
Buyer
LS Corp. · SI
Seller
Japan Korea Joint Smelting (JKJS) consortium
Structure
—
Announced
May 19, 2022
Closed
—
Stage
Closed

Target

LS-Nikko Copper (now LS MnM), established in 1999 as a joint venture between LG Metals and the JKJS consortium led by Japan's JX Metals, is Korea's largest non-ferrous metals company and operates the Onsan smelter, the world's second-largest single-site producer of refined copper. It posted 2021 revenue of KRW 9.9tn and operating profit of KRW 354.4bn.

Deal rationale

LS said LS-Nikko's earnings were strong on rising copper prices and that synergies with group affiliates were expected, adding it expected corporate and shareholder value to rise. An LS Group official said an IPO would be considered as part of a growth strategy, and the goal was reported as building a comprehensive materials company spanning copper, gold, battery and semiconductor materials. On the sell side, JX Metals, the lead member of JKJS, was reported to have first sounded out a sale as part of a portfolio realignment. Part of the funding came from a KRW 470.6bn exchangeable bond issued to JKL Partners.

사업 재편·비핵심 매각
Revenue$6.8bn
Operating income$244m
EBITDA—
Net income—

2021 · Multiple reports agree (not yet checked against DART)

Press coverage

  • 아주경제 (2022-05-19): “지분 49.9%를 9331억원에 사들인다는 안건을 이사회에서 승인받고”
  • 서울경제 (2022-05-19): “지분 49.9%를 9331억 원에 사들이는 안건을 이사회에서 승인 받고”
  • 더팩트 (2022-05-21): “JKL파트너스는 LS를 대상으로 4706억 원 규모의 EB를 인수했습니다. 교환 대상은 LS가 보유한 LS니꼬동제련 지분 22.49%”

This is a data entry summarising filings and press reports. Please check the original sources for the figures.