"Will Boldly Streamline Underperforming Businesses"
First Sale After Chairman Shin Dong-bin's Interview
Lotte Group is pushing for the sale of the ATM business division (formerly Lotte PS Net) of Korea Seven, which operates the 7-Eleven convenience stores. This marks the first business unit sale since Chairman Shin Dong-bin recently stated in an interview with Japanese media that "we will boldly reorganize underperforming businesses."
According to Lotte Holdings on the 7th, Lotte recently selected Samjong KPMG as the lead manager for the sale to find a company to acquire Korea Seven's ATM business division. This division was previously up for sale in 2017 when it was Lotte PS Net but the deal did not materialize, and it was merged into Korea Seven in 2019. The sale price is estimated to be around 40 to 50 billion KRW.
The sale of the ATM business division has reportedly been underway since last year. Lotte Group and Korea Seven have held discussions regarding the ATM sale, and they plan to sell the ATM business division and switch to a consignment operation model in the future.
Earlier, Chairman Shin Dong-bin announced plans to shift to new growth areas and sell off underperforming businesses. He said, "We have acquired about 60 companies, big and small, but now we are changing our policy to proceed not only with acquisitions but also with some sales."
Previously, Lotte sold its Lotteria business in Japan to the local food service company Zensho Holdings, and has also divested from the family restaurant TGIF (TGI Fridays), Vietnamese confectionery company Bibica shares, Lotte Aluminum's boiler business, Lotte Card, and Lotte Insurance.
However, Lotte is focusing on nurturing new growth businesses such as Lotte Biologics, Lotte Healthcare, and Lotte Information & Communication.
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