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Photo = Lotte Chemical |
[Alpha Biz= Kim Jisun] Lotte Chemical has sold a 4.9% stake in the Japanese company Resona, raising 2.75 trillion won in additional liquidity. The shares were fully acquired in 2020, and the sale, along with dividends previously secured, has resulted in a profit of approximately 800 billion won.
Despite the sale, Lotte Chemical will continue its business collaboration with Resona.
Amid the challenging petrochemical market conditions, Lotte Chemical is accelerating its efforts to improve its financial structure by making quick decisions on the sale of inefficient businesses and assets. The sale of the Resona stake is part of its strategy to enhance financial soundness by liquidating non-core assets.
On the 6th of this month, Lotte Chemical raised 6.5 trillion won through a Price Return Swap (PRS) contract for 25% of its 49% stake in Lotte Chemical Indonesia. Last October, an additional 6.6 trillion won was secured by utilizing a 40% stake in its U.S. subsidiary, bringing the total liquidity raised to 13 trillion won.
Recently, Lotte Chemical sold its Pakistan subsidiary for 979 billion won and has been quickly transitioning to a high-value business structure by shutting down inefficient domestic basic chemical production lines.
Meanwhile, Lotte Group is restructuring across all its business sectors to enhance its competitive edge. On the 11th, Hotel Lotte and Lotte Busan Hotel signed a formal agreement with Affinity Equity Partners to sell 56.2% of Lotte Rental for 1.58 trillion won. Last month, Lotte Wellfood sold its Jeungpyeong plant and also completed the sale of the Korea Seven ATM business.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
