Lotte Group signed agreements to sell majority stakes in Lotte Insurance Co. Ltd. and Lotte Card Co. Ltd.
The group, along with other shareholders, agreed to sell a 53.49% stake, or 71,828,783 shares, in Lotte Insurance to private equity investor JKL Partners Inc. for 373.4 billion won, or 5,199 won per share, according to a May 24 filing. The stake is held by three Lotte Group units, Lotte Group Chairman Shin Dong-bin and Japan's Aioi Nissay Dowa Insurance Co. Ltd.
Terms of the Lotte Insurance's stake sale could change, pending approval by South Korea's Financial Services Commission.
Separately, LOTTE Corp., the holding company of Lotte Group, said it agreed to sell 59,664,814 shares in Lotte Card Co. Ltd. to MBK Partners for 1.38 trillion won. The agreement for the Lotte Card stake will be signed after regulatory clearance, according to a filing.
MBK Partners can transfer a stake of up to 20% to its consortium partner Woori Bank as part of the agreement. While the filing did not specify the stake being sold to MBK Partners, Pulse reported that Lotte Corp. will sell a 79.83% stake and retain the remaining 13.95%. Market sources said MBK Partners would take up about 60%.
As of May 24, US$1 was equivalent to 1,186.81 South Korean won.