Lotte founder's eldest son to sell most of stakes in 4 units (updated)

Lotte

12/09/2017 07:13

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    SEOUL, Sept 12 (Reuters) - Shin Dong-joo, the elder son of 
Lotte Group's founder, has decided to sell most of his stakes in 
Lotte Shopping  023530.KS  and three other units of South 
Korea's No.5 conglomerate, his company said without providing 
the value of the sale. 
    Shin raised "serious concerns" about the planned merger of 
Lotte Shopping with the three other affiliates - Lotte 
Confectionery  004990.KS , Lotte Chilsung Beverage  005300.KS  
and Lotte Food  002270.KS .  
    Shareholders at Lotte Group affiliates last month approved a 
plan to set up the holding company by restructuring the 
conglomerate's four listed units to boost operational 
transparency, a move analysts say could further enhance its 
chairman's control amid a power struggle with his brother. 
    The conglomerate has been under pressure to resolve its 
complex structure and improve governance after a public feud 
between founding family members that began in 2015 and has 
pitted Lotte Group Chairman Shin Dong-bin against elder brother 
Shin Dong-joo. 
    "The splits and mergers aimed at launching a Lotte holding 
company would not benefit individual shareholders," Shin 
Dong-joo's statement said.      
    The elder Shin said his stake sales did not mean he would 
give up trying to gain management control of the group.  
    Shin Dong-bin, the youngest son of Lotte Group founder Shin 
Kyuk-ho, cemented control of the group in 2015 with the support 
of shareholders in a Japan-based holding company. Older brother 
Shin is engaged in legal proceedings seeking to wrest control.  
    Several Lotte Group shares barely moved after Shin's 
decision to sell his stakes.  
    The elder Shin also said Lotte Shopping should "immediately" 
withdraw from the Chinese market, after most of its stores were 
shut down in the wake of a diplomatic row between Beijing and 
Seoul.  
 
 (Reporting by Hyunjoo Jin; Additional reporting by Joyce Lee 
and Dahee Kim; Editing by Stephen Coates) 
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters 
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net)) 
 
Keywords: LOTTE SHOPPING STAKESALE/