Wumei Holdings, Inc. completed the acquisition of 87.39% stake in Lotte Mart Co., Ltd. from Lotte Shopping Co., Ltd..
June 29, 2018
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Wumei Holdings, Inc. agreed to acquire 87.39% stake in Lotte Mart Co., Ltd. from Lotte Shopping Co., Ltd. (KOSE:A023530) for KRW 77.7 billion on April 26, 2018. A contract was signed on May 2, 2018. As per the terms of the transaction, Wumei Holdings, Inc. will acquire 21 outlets which include 10 hypermarkets and 11 supermarkets. On completion, Lotte Shopping will retain 12.6% stake in Lotte Mart. During the year ended December 2017, Lotte Mart Co., Ltd. reported revenues of KRW 79.5 billion, operating loss of KRW 39.2 billion, net liabilities of KRW 126.4 billion, total assets of KRW 98.1 billion and net loss of KRW 71.6 billion. The transaction was resolved by the Board of Directors of Lotte Shopping on April 26, 2018. As per the amendment report dated May 2, 2018, the transaction is expected to be completed by May 2, 2018. Ernst & Young and Goldman Sachs acted as financial advisors to Lotte Shopping.
Wumei Holdings, Inc. completed the acquisition of 87.39% stake in Lotte Mart Co., Ltd. from Lotte Shopping Co., Ltd. (KOSE:A023530) by June 2018.
Lotte Shopping Co Ltd is a Korea-based company mainly engaged in the operation of department stores. The Company operates its business through six segments. The Department Store segment is involved of the installation and operation of department stores such as Lotte Depart Store. The Company operates its department stores within the domestic market and to overseas markets, including Vietnam, Russia, Indonesia and China. The Discount Store segment is involved of the installation and operation of discount stores. The Electronics Store segment is engaged in the sale of home appliances and computers and communication devices. The Super segment is engaged in the operation of supermarkets and the rental of real estate. The Home Shopping segment mainly engages in home shopping and e-commerce business through Internet shopping mall and mobile. The Other segment engages in the businesses including the sale of cosmetics, food and other consumer goods, the operation of movie theaters and others.
LOTTE SHOPPING CO., LTD. 
