Million-Dollar Deal: LX Pantos Founder’s Son Cashes In with $37 Million Share Sale to LX International
LX Pantos Founder’s Son Sells Shares to LX International
The only son of the late founder of LX Pantos Co., Koo Bon-ho, has sold his additional shares in the company to LX International Corp., the trading arm of LX Group, for 49 billion won ($37 million).
According to the Financial Supervisory Service (FSS), Koo sold his 5% stake of 100,000 shares in LX Pantos to LX International for 490,000 won each.
Following the deal, Koo’s holdings in LX Pantos fell to 9.9% from 14.9%, and LX International’s stake in its logistics unit rose to 56% from 51%.
LX International announced in a regulatory filing that it had acquired an additional stake in LX Pantos to strengthen its hold.
Investor with the Midas Touch?
The disposal of Koo’s stake comes as the planned initial public offering of LX Pantos has been slower than expected.
Established as air cargo company Bumhan Huengsan Corp. in 1977, LX Pantos has grown into a major logistics company thanks to stable orders through internal transactions with companies owned or run by LG Group families or relatives.
However, the company’s business hit a snag recently, with operating profit falling 58.3% on the year to 156 billion won in 2023 on sales of 6.9 trillion won, down 35.5%, due to rising ocean freight rates.
Koo is the only son of the late founder Bumhan Huengsan, who was a cousin of Koo Ja-kyung, the late honorary chairman of LG Group.
The younger Koo held a joint 97% stake in the former LX Pantos with his mother after his father’s death in 1999. He also served as vice chairman of the company.
But the mother and son sold their 70.9% holdings to LX International and family members of the owner LG Group in 2015. LX International placed LX Pantos under its wings as a subsidiary with a 51% stake.
Koo is a professional investor who has raked in huge returns from his stock investments until he was hit with a four-year suspended sentence for market manipulation in 2008.
He controls the majority stake of 38.9% in Redcap Tour Co., chaired by his mother, and has continued to invest through his wholly owned investment companies, including Pantos Holdings.
Given that the corporate value of LX Pantos was estimated at 980 billion won in the latest deal, Koo may still have the Midas touch.
The value is 34.4% higher than the figure estimated five years ago, when family members of the LG Group owner sold their combined 19.9% stake to Mirae Asset Securities Co. for 145 billion won to avoid an internal transaction dispute between LG Group and LX Pantos.