Lotte Corporation will inject about 155 billion won more into its group bio affiliate Lotte Biologics.
Lotte Corporation said in a filing that its board met on the 27th and decided to acquire 2,555,804 common shares of Lotte Biologics for 155.03 billion won. The payment date for the subscription funds is set for the 19th of next month.
This capital injection will be made by participating in a 255.3 billion won rights offering that Lotte Biologics decided to pursue earlier this month. Lotte Biologics is issuing 4,209,000 new shares to secure funds needed to build Plant 1 of the Songdo Bio Campus in Incheon. All funds raised through the offering will be used for facility investment.
Existing shareholders including Lotte Corporation, Japan's Lotte Holdings, and Hotel Lotte will participate in the rights offering.
Lotte Corporation said the purpose of the investment is "to maintain control over Lotte Biologics and enhance business competitiveness." Including this investment, the cumulative amount Lotte Corporation has injected into Lotte Biologics will rise to 883.1 billion won.
Lotte Biologics is a contract development and manufacturing organization (CDMO) that Lotte Group is nurturing as a future growth engine, and it was founded in 2022. Plant 1 of the Songdo Bio Campus, now under construction, is targeting commercial operation by the end of this year.