Sovereign Asset Management ("Sovereign") announced today, following meetings of the boards of several group companies, that the status of their investments in LG Electronics and LG Corp have been amended from 'influencing management' to 'simple investment'.
Mark Stoleson, Head of Group Investments at Sovereign, said:
"After meetings with LG management, Sovereign has decided not to take any actions that would fall within Korea's 'influencing management' regulations. Under recently introduced Korean regulations, Sovereign is required to report a change of intended investment purpose from 'influencing management' to 'simple investment'."
Korean law requires investors holding five per cent or more of a public company, who wish to exercise basic shareholder rights, such as nominating directors or changing the articles of incorporation, to file a declaration that they intend to 'influence the management'. The alternative is to file a declaration of 'simple investment'.