S.Korea Lotte Group to combine units into holding company -Money Today

Lotte

21/04/2017 03:50

* 4 units to split, combine into holding company-report 
    * Lotte mulling holding company to break cross-shareholding 
ties 
 
    By Joyce Lee 
    SEOUL, April 21 (Reuters) - South Korea's Lotte Group plans 
to combine parts of four units including flagship retailer Lotte 
Shopping Co Ltd  023530.KS  into a holding company to resolve 
cross-shareholding issues, online website Money Today reported. 
    The boards of Lotte Shopping, Lotte Confectionery 
 004990.KS , Lotte Chilsung Beverage  005300.KS , and Lotte Food 
 002270.KS  will convene as early as next week to discuss the 
issue, the domestic business website reported, citing 
unidentified sources. 
    The move may take the form of splitting the four firms into 
two companies each, after which four out of the resulting eight 
firms will be combined into one holding company, Money Today 
reported.  
    An ugly public feud between founding family members starting 
in 2015 turned the spotlight on the group's opaque governance 
structure, increasing pressure on it to resolve its complex 
network of cross-shareholdings. 
     Lotte Group said in January that the four units were 
looking at ways that a holding company structure could be 
utilised. 
    The news comes as Lotte Group Chairman Shin Dong-bin was 
charged earlier this week with bribery in the graft scandal that 
ousted former president Park Geun-hye, and is also on trial on 
charges of embezzlement and breach of trust on a separate case. 
 urn:newsml:reuters.com:*:nL3N1HP2RV urn:newsml:reuters.com:*:nL3N1GX1X8   
    Lotte Group has resolved 83 percent of cross-shareholding 
ties between its units since late 2015 and wants to resolve 67 
remaining cross shareholdings, a spokesman said. Asked about the 
Money Today report, he declined to comment. 
    Shares in Lotte Shopping rose 3.8 percent while Lotte 
Confectionery climbed 4.1 percent in morning trade. Lotte 
Chilsung was up 4.6 percent and Lotte Food gained 2.5 percent. 
 
 (Reporting by Joyce Lee; Editing by Edwina Gibbs) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: LOTTE GROUP RESTRUCTURING/