Lee & Ko advised on the share purchase agreement and joint venture agreement detailing the spinoff of LG Electronics’ electric vehicle (EV) components business (the “Green Business”), which includes Motor/PE (Power Electronics) and Battery Heaters among other EV-related parts, into a joint venture company tentatively named ‘LG Magna e-Powertrain Co., Ltd.’ Magna Metalforming GmbH ("Magna”), an affiliate of the Canadian automotive parts supplier Magna International Inc., will then acquire 49% equity of the joint venture company for USD 453 million in accordance with the agreements.
In connection with this deal, LG Electronics resolved to divide the Green Business and establish a new entity on December 23, 2020, with the spinoff slated to take place during 2021 upon obtaining shareholder approval. Lee & Ko was the main transaction counsel for LG Electronics and provided comprehensive advisory services in connection to this transaction, including review of the transaction structure, due diligence on the Green Business, assistance in the spinoff thereof into the joint venture company, and the negotiation and execution of the transaction documents.
[Intrado] LG and Magna Enter Joint Venture Agreement to Expand in Powertrain Electrification Market