[Featured Stock] Lotte Chemical Falls Over 5% on Report of Acquiring Iljin Materials

[Asia Economy Reporter Myunghwan Lee] Lotte Chemical is down more than 5% in early trading on the 28th. This is interpreted as a result of reports that Lotte Chemical is acquiring Iljin Materials.

As of 9:35 a.m. on the day, Lotte Chemical is trading at 150,500 KRW, down 5.35% (8,500 KRW) from the previous trading day. Iljin Materials, mentioned as the acquisition target, is trading at 56,500 KRW, down 0.88% (500 KRW) from the previous trading day.

On the day, a media outlet reported that Lotte Chemical will sign a stock purchase agreement (SPA) to acquire Iljin Materials as early as next month.

Yoon Jaesung, a researcher at Hana Securities, commented on the acquisition report of Lotte Chemical, saying, "There may be questions about the acquisition price itself, but it is positive in that it confirmed a clear will and vision for mid- to long-term growth direction." He added, "Considering Lotte Chemical's cash assets (around 2 to 3 trillion KRW) and low debt ratio (below 50%), it is judged that there will be no problem in raising funds through borrowing or other means."