LOTTE Chemical said on the 13th that it has completed the sale of a 75.01% equity stake in its subsidiary LOTTE CHEMICAL Pakistan Limited (LCPL).
LCPL produces high-purity terephthalic acid (PTA), used for polyester fiber, industrial yarn, and PET bottles, with an annual capacity of 500,000 tons (t).
The buyer is PTA Global Holding Ltd, a special purpose vehicle (SPV) jointly established by AsiaPak Investments Limited (API), a Pakistan private equity firm, and Montage Commodities FZCO, a United Arab Emirates oil and chemical trading corporations.
The sale has proceeded since the disclosure on Feb. 19 this year, and after the completion of the tender offer process in September, payment of the transaction price and the exchange of shares were finalized on the previous day (the 12th). The total sale price is 98 billion won.
Including 29.6 billion won in three-year dividends received in June last year, LOTTE Chemical secured a total of 127.6 billion won in funds.
Earlier, LOTTE Chemical classified LCPL, focused on commodity products, as a non-core business in its portfolio starting in 2023 and has pursued its sale.
A LOTTE Chemical official said, "With this transaction, we have resolved management uncertainties such as bailout measures and exchange rate volatility in Pakistan, while at the same time strengthening our financial soundness," and added, "We will continue to push for business restructuring to solidify the reinforcement of our fundamental competitiveness."