Lotte Chilsung Beverage Co.,Ltd. (KOSE:A005300) signed to acquire additional 42.2% stake in Pepsi-Cola Products Philippines and 100% stake in Lotte Liquor Japan Co.,Ltd. from LOTTE Corporation (KOSE:A004990) for KRW 91.7 billion on September 10, 2020. Under the terms, Lotte Chilsung Beverage will increase its stake in Pepsi-Cola Products Philippines from 30.7% to 72.9% for KRW 71.4 billion and 100% stake in Lotte Liquor Japan for KRW 20.5 billion. Lotte Chilsung will issue 981,663 new shares at issuing price of KRW 93,660 to Lotte Holdings, whose stake in Lotte Chilsung would rise to 34.6% from 26.5%. The fractional difference is deal value of KRW 87,105 will be collected in cash from Lotte Chilsung Beverage on the date of subscription and share payment.

The transaction is subject to the approval of the competent court, and may change due to a re-decision by the Board of Directors depending on tax and other external circumstances, regardless of court approval. The transaction is subject to disclosure under the Fair Trade Act, and this disclosure replaces the disclosure of large-scale internal transactions by the FTC. The transaction is expected to be completed by December 11, 2020.