LG Electronics to Raise $940 Million in Rights Offering

LG Electronics Inc.’s board approved a plan to raise $940 million via a rights offering, news that sent shares of the South Korean consumer electronics firm down by more than 13 percent Thursday.

LG said the move will allow the company to secure funds to invest in key businesses including smartphones and it also plans to hire more workers. The company plans to issue 19 million new common shares at 55,900 won ($50) each, representing a 9 percent discount to their Thursday closing price of 61,600 won. LG’s shares had their biggest one-day drop in more than three years Thursday, closing down 13.7 percent as investors were concerned about share dilution. The new shares will begin trading on Jan. 9.

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