LG 2001 Annual Report Download - page 91

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LG Electronics Inc. The
43
rd Annual Report
Notes to Financial Statements
for the years ended December 31, 2001 and 2000
27. Spin-off
Upon a resolution of the board of directors on November 15, 2001 and upon a resolution of
shareholders on December 28, 2001, the Company is scheduled to carve out its electronics and information
& communications businesses and establish a new company, and convert its remaining business into a
holding company on April 1, 2002. Accordingly, the Company will be split into two companies, a divesting
company, tentatively named LG Electronics Investment Inc., to engage in the operation of investment in
subsidiaries and affiliates which are not related to the spun off businesses and a divested company,
tentatively named LG Electronics Inc., to engage in the electronics and information & communications
businesses.
Condensed financial information as of September 30, 2001, of two companies after the split is,
estimated according to the spin-off plan, as follows :
Millions of Won (Post spin-off)
(Prior to spin-off) LG Electronics Investment Inc. LG Electronics Inc.
Assets 12,297,215 2,224,770 10,072,445
Liabilities 7,722,171 715,777 7,006,394
Equity 4,575,044 1,508,993 3,066,051