LOTTE Chemical will sell its stake in the Japanese materials company Lezonac to secure additional liquidity.
LOTTE Corporation announced on the 28th that LOTTE Chemical sold 4.9% equity of Lezonac for 275 billion won. This is the entire equity acquired in 2020.
LOTTE Chemical realized a capital gain of about 80 billion won by combining this sale with previously secured dividends. The company plans to continue its business collaboration with Lezonac even after the equity sale.
LOTTE Chemical is accelerating improvements in its financial structure, focusing on selling off inefficient businesses and assets in the recently deteriorated petrochemical market environment. The sale of the Lezonac equity aims to enhance financial soundness by organizing non-core assets.
On the 6th, LOTTE Chemical secured 650 billion won by entering into a Price Return Swap (PRS) contract for 25% of its 49% equity in LOTTE Chemical Indonesia. In October of last year, it raised a total of 1.3 trillion won by adding 660 billion won secured through a 40% stake in a U.S. subsidiary.
Last month, the company sold its Pakistani subsidiary for 97.9 billion won and is currently promoting a transition to a high-value business structure, including shutting down inefficient domestic basic chemical lines.
LOTTE Group is pursuing restructuring across all business areas to enhance its competitiveness. Hotel LOTTE and Busan LOTTE Hotel entered into a definitive agreement on the 11th to sell 56.2% equity of LOTTE Rental to Affinity Equity Partners for 1.58 trillion won. Last month, the company carried out the sale of LOTTE Wellfood's Jeungpyeong factory and the ATM business of Korea Seven.
LOTTE Shopping sold inefficient assets such as the LOTTE Mart Suwon Yeongtong Store and LOTTE Super Yeouido last year. Hotel LOTTE is aiming to improve its financial structure by selling off inefficient assets, including L7 Gangnam by LOTTE, valued at 330 billion won.