Lotte Group secured over 60 billion won in liquidity by selling the ATM business unit of Korea Seven, which operates Seven-Eleven convenience stores (formerly Lotte P&S Net).
Korea Seven announced on the 26th that it signed a contract for the sale of its ATM business with NICE Total Cash Management, a financial automation company.
After the sale, Korea Seven plans to establish a mid- to long-term partnership with NICE Total Cash Management to ensure stable operation of the maintenance and installation of existing store ATMs and cash dispensers.
In 2019, Korea Seven merged with Lotte P&S Net to enhance synergy through the integration of its convenience store operations and cash automated teller machine operations.
However, it viewed the ATM business as non-core and has been pursuing its sale since early last year.
Korea Seven will use the over 60 billion won liquidity secured from this contract to improve its financial structure.
Korea Seven noted that by selling its non-core business, it can focus on strengthening its core competitiveness while entrusting the financial sector to specialists to enhance customer service.
Lotte Group is accelerating the improvement of its business structure across all subsidiaries according to its 'selection and concentration' strategy aimed at enhancing its fundamental competitiveness while selling off non-core businesses and assets.
Last December, Lotte sold LOTTE Rental, and earlier this month, it sold the LOTTE Wellfood Jeungpyeong Plant, the LOTTE Chemical Pakistan subsidiary, and now the Korea Seven ATM business.
Lotte Shopping reduced its debt ratio significantly through a real estate asset re-evaluation for the first time in 15 years. As a result of the asset re-evaluation, the book value of the land increased by 9.5 trillion won to 17.7 trillion won, and the debt ratio decreased from 190.4% to 128.6%.
Lotte Shopping also sold inefficient assets such as the Lotte Mart Suwon Yeongtong store and the Lotte Super Yeoui-dong last year.