LOTTE Corporation (KOSE:A004990) signed a merger contract to acquire Lotte IT Tech Co., Ltd. from LOTTE Korea and others for approximately KRW 670 billion on January 2, 2018. The consideration comprises issuance of 10.2 million new shares of LOTTE Corporation at an exchange ratio of 1.196019. Lotte IT Tech Co., Ltd. will be acquired in a statutory merger and dissolved after the completion. In related deals, LOTTE Corporation agreed to acquire investment business segments from LOTTE LOGISTICS Corp.; Korea Fujifilm Co., Ltd.; Daehong Communications Inc, Lotte International CO., LTD. and Lotte GRS Co., Ltd. On January 23, 2018, the terms of the transaction were amended. LOTTE Corporation will now issue 10.23 million shares as consideration and the consideration ratio was changed to 1.196207. The consideration will now be approximately KRW 680 billion.

The Board of Directors of LOTTE Corporation resolved the transaction on January 2, 2018. The general meeting of shareholders of LOTTE Corporation will be held on February 27, 2018. On February 27, 2018, the transaction was approved by the shareholders of LOTTE Corporation. Creditors can submit their objections from February 27, 2018 to March 30, 2018. The deal is expected to close on April 1, 2018. Ernst & Young Han Young acted as an external rating institution. Samjung Public Account Firm acted as an auditor to Lotte IT Tech Co., Ltd.

LOTTE Corporation (KOSE:A004990) cancelled the acquisition of Lotte IT Tech Co., Ltd. from LOTTE Korea and others on January 2, 2019.