LB Semicon Inc. (KOSDAQ:A061970) agreed to acquire a 67.96% stake in LUSEM Co., Ltd. from LG Corp. (KOSE:A003550) for KRW 75 billion on November 30, 2017. The parties signed the definitive agreement on February 27, 2018.

Under the terms of the transaction, LB Semicon Inc. will acquire 1.4 million shares of LUSEM Co., Ltd. Out of total consideration, KRW 7.5 billion will be paid on contract signing date and remaining within two business days from completion. The transaction will be financed through retained funds and borrowings from financial institutions. For the year ended December 31, 2016, LUSEM Co., Ltd. reported total assets of KRW 125.6 billion, total capital of KRW 100.3 billion, sales of KRW 125.96 billion, and net profit of KRW 984 million.

The transaction was resolved by the Board of Directors of LB Semicon Inc. and LG Corp. on November 30, 2017. Samjong KPMG Advisory Inc. acted as the financial advisor to LB Semicon.