Lotte Chemical selling Pakistan business to Lucky Core Industries2 min read
Lucky Core Industries (formerly ICI Pakistan Ltd) said that It has received confirmation from Lotte Chemical that their board of directors has approved the sale of approximately 75.01 per cent of the issued and paid up capital of Lotte Chemical Pakistan Ltd
KARACHI: Lotte Chemical, South Korean Company, has finally decided to sell off its Pakistan subsidiary to a Lotte Chemical company for 192.4 billion won ($156 million/Rs 35 billion), in a bid to raise funds to focus on the advanced materials business. A sales and purchase agreement (SPA) will be signed on January 26.
“The Board of Directors of the Lotte Chemical Corporation, South Korea (LCC Korea), the majority (75.01 per cent) shareholder of Lotte Chemical Pakistan Limited has approved and authorized the sale of all the company’s shares held by LCC Korea for the purpose of the optimization of LCC Korea’s business portfolio, subject to execution of a share purchase agreement (proposed divestment), and on such terms and conditions as may be specified, under the share purchase agreement,” Company notice said.
Karachi-based Lucky Core Industries will take over the Korean company’s 75.01 percent stake in Lotte Chemical Pakistan, a company that mainly engages in the production of purified terephthalic acid (PTA), Lotte, said in a regulatory filing on Monday.
On the other side, Lucky Core Industries (formerly ICI Pakistan Ltd said that It has received confirmation from Lotte Chemical that their board of directors has approved the sale of approximately 75.01 per cent of the issued and paid up capital of Lotte Chemical Pakistan Ltd. The company will purchase above 1.135 billion ordinary shares.
The completion of the proposed transaction would subject to the signing of the share purchase agreement and other transactional documents between the parties, along with receipt of necessary approvals, including the company’s Board of Directors.