Koo Bennett, the only son of the late founder of LX Pantos Co., has sold a significant portion of his shares in the company to LX International Corp., a trading arm of the LX Group, for 49 billion won (approximately $37 million). This sale reduces Koo’s stake in the logistics firm from 14.9% to 9.9%, while LX International’s ownership in LX Pantos increases to 56% from 51%.
Details of the Transaction
According to a regulatory filing with the Financial Supervisory Service (FSS), Koo sold 100,000 shares, representing a 5% stake, at a price of 490,000 won each. This strategic move comes as LX Pantos faces challenges with its delayed public listing, prompting Koo to adjust his holdings.
Background of LX Pantos
Founded in 1977 as Bumhan Huengsan Corp., LX Pantos has evolved into a major player in the logistics industry, benefiting from stable orders linked to companies within the LG Group. However, the company has recently encountered obstacles, with a significant drop in operating profit—down 58.3% year-on-year to 156 billion won in 2023. Total sales also fell by 35.5%, attributed primarily to declining sea freight rates. These financial struggles have contributed to the postponement of its initial public offering (IPO).
Koo’s Business Journey
Koo Bennett, known as Koo Bon-ho in Korean, has a storied history in the business world. After his father’s passing in 1999, he and his mother initially held a 97% stake in LX Pantos. In 2015, they sold a substantial 70.9% of their shares to LX International and members of the LG Group’s owner family. Following this transaction, LX Pantos became a subsidiary of LX International, which has since strengthened its control over the logistics company.
Koo is known for his investment acumen, having achieved impressive returns in the stock market. However, his career has also faced setbacks, including a four-year suspended sentence for market manipulation in 2008. Despite these challenges, Koo maintains a controlling 38.9% stake in Redcap Tour Co. and continues to invest through his firm, Pantos Holdings.
Future Outlook for LX Pantos
With LX Pantos’ corporate value estimated at 980 billion won, this latest stake sale highlights the company’s improved valuation—34.4% higher than five years ago when LG Group’s family members divested a combined 19.9% stake for 145 billion won. As LX Pantos navigates its current challenges, Koo’s recent sale may signal a strategic shift in preparation for future opportunities.
In summary, the dynamics within LX Pantos, coupled with Koo’s investment strategies, will play a crucial role in shaping the company’s future as it aims to overcome current obstacles and position itself for potential growth.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
