Lotte Shopping Co. Ltd. will sell its Lotte Mart operation in Shanghai to Chinese retailer Liqun Group Co. Ltd., Yonhap News Agency reported May 11.
Yonhap cited a regulatory filing by the South Korean retail giant that said its subsidiary Lotte Shopping Holding Hong Kong Co. will sell the unit to Liqun for 291.4 billion South Korean won.
Currently, only four out of 74 Lotte Mart discount stores in Shanghai and its surrounding areas are running, with the rest having been voluntarily closed or shut down by Chinese authorities amid a diplomatic spat between Seoul and Beijing in 2017.
Liqun is expected to acquire 53 of the stores, with the rest likely to be closed permanently, according to the report.
The deal comes as the company plans to sell off all Lotte Mart stores across China in the first half. It also comes shortly after news that Lotte Shopping was selling its Beijing operation comprising 21 stores to Chinese hypermarket operator Wumei Holdings Inc.
Following the sale to Liqun, Lotte Shopping would have 14 Lotte Mart stores remaining in China, the report said.
As of May 10, US$1 was equivalent to 1,066.18 South Korean won.