Lotte Data Communication Company (KOSE:A286940) agreed to acquire 71.14% stake in JoongAng Control Co.,Ltd. from Shin Sang-hee and 3 others for KRW 69 billion on October 28, 2021. Consideration will be paid in cash. Down payment of KRW 9.8 billion will be paid within 7 days of signing the contract and balance will be due on January 13, 2022.

Lotte Data Communication Company will acquire 201,460 shares, representing approximately 71.14% stake in JoongAng. The transaction will be financed with own funds and borrowings of KRW 50,000 from Shinhan Bank. For the year ended December 31, 2020, JoongAng Control reported total assets of KRW 29.7 billion, total equity of KRW 15 billion, sales of KRW 43.8 billion and net income of KRW 545.3 million.

The transaction is resolved by the board of Lotte Data Communication Company. The transaction is expected to close on January 13, 2022.