Hoban Group has acquired equity in LS Corp., the holding company of LS Group. The company explained that the acquisition was a simple investment betting on growth potential. However, the market interprets this acquisition as a strategic approach to gain an advantage in the ongoing patent lawsuit between Taihan Cable & Solution and LS Cable & System.
According to industry sources on the 12th, Hoban Group is reported to have acquired approximately 3% of the equity in LS Corp. A Hoban Group representative confirmed the acquisition of equity in LS Corp, saying, "That’s correct."
Hoban Group presented the growth potential of the power industry as the background for the equity acquisition in LS Corp. A Hoban Group representative noted, "We made the acquisition for simple investment purposes, seeing the growth potential in the power industry," adding, "The group has good liquidity, and after operating Taihan Cable & Solution, we judged that the future growth potential in this field is high, which led to the investment."
In the financial investment industry, Hoban Group's acquisition of equity in LS Corp. is seen as having a purpose of countering LS Cable & System. Currently, Taihan Cable & Solution, a Hoban Group affiliate, and LS Cable & System are embroiled in a patent lawsuit. For this reason, it is believed that Hoban Group's acquisition of equity in LS Corp. is related to the patent lawsuit. According to corporate law, shareholders who secure more than 3% of equity can demand to inspect the corporation's books and documents.
LS Cable & System filed a lawsuit in 2019 claiming that Taihan Cable & Solution's "bus duct joint kit" product infringed on its patent rights. A bus duct is a distribution means that delivers electric energy to buildings. A joint kit is a component that maintains the flow of current by connecting individual bus ducts. In the first trial, LS Cable & System won partially, but both parties appealed, and the second trial is currently underway.
Hoban Group has denied this interpretation, saying, "That’s not true."