[Market Movers] Lotte Shopping and ContentreeJoongAng Rally on Lotte Cinema and Megabox Merger News

Lotte Shopping and ContentreeJoongAng both saw strong gains on May 9 following news of a merger between the cinema chains Lotte Cinema and Megabox.

As of 11:46 a.m. on this day, shares of Lotte Shopping were trading at 71,100 won, up 6.92% from the previous trading day.

At the same time, shares of ContentreeJoongAng were up 3.89%, trading at 10,140 won.

The previous day, Lotte Cultureworks (formerly Lotte Cinema) and MegaboxJoongAng announced that they would sign a memorandum of understanding (MOU) for a merger. The companies plan to strengthen the competitiveness of their existing theater and film businesses and expand into new business areas through the merger. As expectations for a restructuring of the film industry grow, buying activity has been concentrated in Lotte Shopping and ContentreeJoongAng, the largest shareholders of the two companies.

Lotte Shopping holds an 86.37% stake in Lotte Cultureworks, while ContentreeJoongAng owns a 95.98% stake in MegaboxJoongAng.