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[Alpha Biz= Kim Jisun] The financial investor (FI) of Lotte Global Logistics, a logistics subsidiary of the Lotte Group, has exercised a large-scale put option, resulting in Lotte Group agreeing to pay approximately KRW 400 billion. This marks the first time an FI has exercised such a put option due to a failed initial public offering (IPO).



According to the investment banking industry on May 12, H&Q Private Equity (H&Q PE), the second-largest shareholder of Lotte Global Logistics, recently notified Lotte Holdings and Hotel Lotte of its intention to exercise a put option worth KRW 378.9 billion. 

 

 

H&Q PE had invested in Lotte Global Logistics back in 2017, signing an agreement that included a put option clause in the event of an unsuccessful IPO. With the IPO now effectively postponed indefinitely, the firm opted to trigger the clause.

 

 

The exercise price for the put option was set at KRW 50,720 per share—nearly four times higher than Lotte Global Logistics' recent IPO price range of KRW 11,500 to KRW 13,500 per share.

 

 

 

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