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Lotte Group reorganises

Profile Photo By: Steve Shellum
April 26, 2017

Lotte Group reorganises

Seoul, Korea – 26 April 2017 –
South Korea conglomerate Lotte Group plans to divide four key businesses valued at about US$12 billion into operating and holding units, slashing the number of cross shareholdings to 18 from 67 and allowing its chairman to tighten his grip on a hotels-to-retail conglomerate rocked by a years-long family feud and a corruption trial.

Hotel LotteLotte Confectionery Co. will absorb the investment companies created when the South Korean group’s shopping, food and beverage units are each split into operating and holding companies under a plan to be presented for shareholder approval on August 29, Lotte Group, Bloomberg reported. The confectionery unit’s investment company would then merge the holdings companies into a single entity, according to the filing.

A reorganisation could also unlock value and pave the way for an initial public offering of Hotel Lotte Co, a move that was delayed after prosecutors began an investigation of the company in June 2016. The hotel unit IPO is likely to take place in 2019, a Lotte official said earlier.

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