S.Korea's Lotte Data Communication says plans IPO (updated)

Lotte

15/03/2018 08:14

* Part of Lotte Group's pledge to simplify holding structure
    * Lotte has said still seeking timing to list Hotel Lotte
    * Chief's arrest could be more motivation for
transparency-analyst

 (Adds analyst comment, background)
    By Joyce Lee
    SEOUL, March 15 (Reuters) - Lotte Data Communication Co, a
unit of South Korea's Lotte Group, said on Thursday it has
sought approval from the country's stock exchange for an initial
public offering (IPO). 
    The planned IPO is part of a pledge by Lotte Group to
simplify its holding structure through IPOs, as well as via its
formation of holding company Lotte Corp  004990.KS  late last
year, Lotte Data said in a statement. 
    The undertaking was originally announced by Lotte Group
Chairman Shin Dong-bin, who was jailed for bribery last month,
sparking concerns of a leadership vacuum.  urn:newsml:reuters.com:*:nL4N1Q32Z0 
    "This is an extension of Lotte's previous moves to make its
ownership more transparent," said Park Ju-gun, head of research
firm CEO Score. 
    "Lotte is likely to be even more active in such moves, as
the chairman still faces appeals." 
     The Seoul Central Court in February sentenced Shin to two
years and six months in prison in a case tied to an
influence-peddling scandal that has rocked the country's
business and political elite.  urn:newsml:reuters.com:*:nL4N1Q41BE 
    Lotte Group has also said it is seeking the right time to
list Hotel Lotte, which had been pursuing an estimated $4.5
billion IPO in 2016 before it was scupper. 
    Lotte Data, which provides IT services and reported revenue
of 691.3 billion won ($649.27 million) in 2017, did not give
details on the potential IPO dates or size. 

($1 = 1,064.7300 won)

 (Reporting by Joyce Lee
Editing by Shri Navaratnam)
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net))