Lotte aims to sell China Lotte Mart stores by year-end, has several suitors (updated)
12/10/2017 04:00
* In detailed talks with some firms on Lotte Mart China
stores
* Hotel unit IPO to take time due to political tensions with
China
(Adds comments by company executive, plans for Hotel Lotte IPO)
By Hyunjoo Jin
SEOUL, Oct 12 (Reuters) - South Korea's Lotte Group aims to
sell its Lotte Mart stores in China by the end of this year, a
company executive said on Thursday, adding that several firms
have expressed interest in the troubled unit.
The country's No.5 conglomerate decided to bow out of the
business after most of its hypermarkets and supermarkets in
China were shut down amid political tensions between the two
countries.
"We are in detailed talks with some of those companies,"
Lim Byung-yun, an executive vice president at Lotte Corp, the
group's newly launched holding company, said at a news
conference.
The size of the deal is expected to be small at a couple
hundred million dollars, a banking source said, declining to be
identified as the talks were confidential.
Lotte has been particularly hard hit by the political
friction after it agreed to hand over land in southern South
Korea for a U.S.-made missile defence system - a plan that has
angered Beijing which argues that the radar can penetrate far
into its territory.
Goldman Sachs GS.N has been picked to managed the sale.
Lotte Corp executive Lee Bong-chul said it would take time
to list the group's Hotel Lotte unit, as political tensions with
China have resulted in declines in the number of Chinese
tourists visiting South Korea, hurting sales of both its hotel
and its duty free businesses.
The offering, expected to be worth around $4.5 billion, was
delayed following a corruption scandal involving Lotte Group
Chairman Shin Dong-bin. He is on trial after prosecutors
indicted him and other executives on embezzlement and other
charges. Shin has denied the charges.
(Reporting by Hyunjoo Jin; Additional reporting by Kane Wu;
Editing by Edwina Gibbs)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
Keywords: LOTTEMART CHINA/SALE