LOTTE Corporation (KOSE:A004990) signed a merger contract to acquire Daehong Communications Inc. for approximately KRW 410 billion on January 2, 2018. Under the terms, LOTTE Corporation will issue 6.34 million shares at an exchange ratio of 158.7. As on January 23, 2018, the terms of the deal has been amended. Under the amended terms, LOTTE Corporation will issue 6.35 million shares at an exchange ratio of 158.7. LOTTE LOGISTICS Corp.; Korea Fujifilm Co., Ltd.; and Daehong Communications Inc. will conduct spin-offs of the all the business segments other than the investment business segment and establish new companies. Lotte International CO., LTD. and LOTTE GRS Co., Ltd. will conduct spin-offs of their investment business segments. Then Lotte Corporation will acquire LOTTE LOGISTICS Corp.; Korea Fujifilm Co., Ltd.; Daehong Communications Inc.’s investment business segments, Lotte International CO., LTD. and LOTTE GRS Co., Ltd.’s investment business segments, and Lotte IT Tech Co., Ltd. in a statutory merger. As of September 30, 2017, Daehong Communications Inc. reported total assets of KRW 394.51 billion and total capital of KRW 348.07 billion. The Board of Directors of LOTTE Corporation resolved the deal on January 2, 2018. The general meeting of shareholders of LOTTE Corporation will be held on February 27, 2018. Creditors can submit their objections from February 27, 2018 to March 30, 2018. The transaction has been approved by shareholders of LOTTE Corporation. The deal is expected to close on April 1, 2018. Ernst & Young Han Young acted as external rating institution. LOTTE Corporation (KOSE:A004990) completed the acquisition of Daehong Communications Inc. on April 1, 2018.