Hotel Lotte to Pursue Block Deal of 200,000 Lotte Chilsung Shares to "Improve Financial Structure"

[Asia Economy Reporter Yuri Kim] Hotel Lotte is disposing of 200,000 shares of Lotte Chilsung Beverage it holds through an off-hours block trade.

According to industry sources on the 8th, Hotel Lotte conducted a demand forecast targeting institutions after the market closed for the block trade of 200,000 shares of Lotte Chilsung Beverage. This corresponds to 2.15% of the total issued shares of Lotte Chilsung Beverage. Samsung Securities is the lead manager for the block trade sale. The selling price will be determined by applying a 3-5% discount to the closing price of 195,000 KRW on that day.

Through this block trade, Hotel Lotte will secure approximately 37 billion KRW in funds. Hotel Lotte stated that this deal is "being pursued to secure liquidity and defend credit ratings through the sale of shares."

The company said, "Although the atmosphere is freeing up from the impact of COVID-19, such as the lifting of social distancing, the number of overseas travelers has not yet returned to pre-COVID levels, and accordingly, performance recovery is insufficient. Therefore, by selling non-operating shares held by Hotel Lotte, we intend to repay maturing borrowings and improve the financial structure."