The LG Group stated that it has decided to sell its two Chinese headquarters buildings for 1.37 trillion won or $1.15 billion. RECO Changan, a subsidiary that is wholly owned by the Government of Singapore Investment Corp will buy the LG Beijing Twin Towers, which are two 31-storeyed buildings located in Beijing, as per the business group.
LG to sell two Chinese headquarters
The stakes that three LG companies, LG Electronics Inc, LG Chem Inc and LG International Corp have in the LG Holding Hong Kong will be sold, as reported by Yonhap news agency. The South Korean multinational electronics company mentioned that the sale is aimed to secure liquidity amidst the global economic uncertainties and for funding its future growth engines. The deal will be completed by April, as per company sources.
LG spent $400 million to build the towers, located in the Chaoyang district of the Chinese capital, in 2005. Meanwhile, LG has become the first major South Korean company to give Mobile World Congress (MWC) 2020 a miss and others may soon follow suit, considering the threat that the coronavirus poses, according to industry watchers.
"LG Electronics is closely monitoring the situation related to the novel coronavirus outbreak, which was recently declared a global emergency by the World Health Organisation as the virus continues to spread outside China," the company said in a statement earlier this week.