Lotte Confectionery Co. Ltd. completed the acquisition of 92.44% stake in Rakhat JSC from LOTTE Corporation for approximately KRW 200 billion.
December 19, 2018
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Lotte Confectionery Co. Ltd. signed an agreement to acquire 92.44% stake in Rakhat JSC (KAS:RAHT) from LOTTE Corporation (KOSE:A004990) for approximately KRW 210 billion on September 7, 2018. Under the terms, Lotte Confectionery Co. Ltd. will issue shares as consideration to acquire 3.33 million shares of Rakhat JSC. The transaction has been resolved by the Board of Directors of LOTTE Corporation at the meeting held on September 7, 2018. The transaction is expected to be completed by December 20, 2018.
Lotte Confectionery Co. Ltd. completed the acquisition of 92.44% stake in Rakhat JSC (KAS:RAHT) from LOTTE Corporation (KOSE:A004990) for approximately KRW 200 billion on December 20, 2018. Previously, Lotte Confectionery Co.,Ltd had agreed to acquire 1.44% stake in Lotte Confectionery Holdings (Europe) B.V. and 96.5% stake in Lotte Kolson (Private) Limited from LOTTE Corporation on September 7, 2018. As consideration, for stake acquisitions in Rakhat JSC, Lotte Confectionery Holdings (Europe) B.V. and Lotte Kolson (Private) Limited, Lotte Confectionery Co. Ltd. authorized to issue 2.2 million shares initially. However, due to issue of fractional shares, Lotte Confectionery Co. Ltd has issued stocks worth approximately KRW 349 billion and amount of KRW 0.015 million in cash on December 20, 2018. . The transaction has been resolved by the Board of Directors of Lotte Confectionery Co. Ltd. at the meeting held on September 7, 2018. Samjung Public Account Firm valuation acted as external valuation agency on the deal.
Lotte WellFood Co Ltd, formerly LOTTE CONFECTIONERY CO LTD, is a Korea-based company principally engaged in the manufacturing and distribution of foods. The Companyâs product includes dried confections, such as chewing gums, candies, biscuits, chocolates, pies, snacks and others; ice creams, such as bar, cone, cup, pencil ice creams; health foods and breads. The Company provides its products under the brand names of Flavono, Pepero, Cereals, Chic Choc, Momâs Homemade Pie, Chocopie, World Cone, Mon Cher, Squid Peanuts, Cheetos, Anytime, Jellying Jellying, Garlic Soboro and others. The Company distributes its products within domestic market and to overseas markets.