KB News Desk
Lotte Group won approval from the Korea Fair Trade Commission on Tuesday to sell its stake in Lotte Rental, held by Hotel Lotte and Busan Lotte Hotel, with the deal expected to close in October.
Lotte agreed last month to sell a 61.2 percent controlling stake, held by Hotel Lotte and Busan Lotte Hotel, for 1.31 trillion won ($953 million), or 59,000 won per share. The group said it would use the proceeds to strengthen the hotel units’ finances and fund renovations and premium brand growth.
The sale is part of a broader restructuring drive. Lotte has raised about 1.7 trillion won this year through asset sales, including stakes in Lotte Energy Materials’ subsidiary Lotte Ecowall and properties from Lotte Shopping, Lotte Wellfood and Lotte Nestle Korea.
Lotte Chemical is also restructuring. Its Daesan plant in South Chungcheong Province recently merged with HD Hyundai Chemical to form H&L Advanced, in which HD Hyundai Oilbank and Lotte Chemical each hold a 50 percent stake. Its Yeosu plant in South Jeolla Province is in similar talks with affiliates.
The moves come as Lotte’s major units post stronger earnings. Lotte Shopping’s first-half operating profit rose 81.5 percent to 342.8 billion won, while Hotel Lotte’s more than tripled to 135.6 billion won.
“We expect this approval, together with improved earnings, to strengthen the group’s profitability and financial health,” a Lotte official said. “We’ll keep accelerating restructuring through non-core and idle asset sales in the second half.”
