LOTTE Group logistics company LOTTE Global Logistics has withdrawn its listing plan on the KOSPI market, leading financial investor (FI) LLH to exercise its put option. LOTTE Corporation and Hotel Lotte agreed to absorb this put option.
According to the financial supervisory service's electronic disclosure system (DART) on the 12th, LOTTE Corporation and Hotel Lotte announced that they will acquire 7,472,161 shares of LOTTE Global Logistics held by LLH (21.87% equity) for approximately 380 billion won. LOTTE Corporation will cover 307.4 billion won, while Hotel Lotte will bear the remainder. The acquisition date is set for June 11.
LLH entered into a put option contract in 2017 while investing 286 billion won in LOTTE Global Logistics, stating that if the initial public offering (IPO) takes place at a price lower than the acquisition price per share, LOTTE Group will cover the difference.
LOTTE Global Logistics began the process for its KOSPI market listing in March. However, the demand forecast results targeted at institutional investors indicated that the expected offering price would fall below the desired price range, leading the company to abandon its listing plan on the 2nd of this month.
LOTTE Group expects that both LOTTE Corporation and Hotel Lotte have completed financial preparations to pay the put option price, indicating there will be no issues with funding. However, there remains the possibility that some contract details may change during negotiations with LLH.