Seoul, Oct 29 (IANS) South Korean tech giant LG Electronics Inc. on Thursday said it will sell its full stake in a logistics unit in line with efforts to restructure business portfolios and boost managerial efficiency.
LG Electronics said it will sell its entire stake in Hi Logistics Co., or 720,000 shares, to Pantos Logistics Co., another logistics firm under LG Group, for 105.4 billion won ($93.1 million), Yonhap News Agency reported.
LG International Corp., a trading arm of LG Group, took over Pantos Logistics in May.
Hi Logistics currently deals with LG Group’s land logistics needs, while Pantos Logistics is specialized in air and marine transportation.
LG Electronics said the deal is aimed at improving the competitiveness and efficiency of its logistics management.
Following the stake sale, Pantos Logistics will likely play a key role in the group’s logistics business, industry watchers said.
Earlier this month, LG Chem Ltd. handed over its organic light-emitting diode light business to LG Display Co. In 2013, LG CNS Co., an IT affiliate of LG Group, handed over its vehicle components business to LG Electronics.