Lotte Group has decided to repurchase the shares of Lotte Global Logistics held by its financial investor (FI) for approximately 400 billion KRW. This decision comes as a result of the failed initial public offering (IPO) of Lotte Global Logistics.
On May 12, Lotte Corporation announced that it had acquired 6,044,952 shares of Lotte Global Logistics for approximately 307.4 billion KRW, following the exercise of a put option (stock sale right) by LLH. As a result, Lotte Corporation's stake in Lotte Global Logistics increased from 46.04% to 63.73%. The scheduled date for the share acquisition is June 11.
LLH is a special purpose company (SPC) established by H PE, a private equity fund (PEF) manager. LLH was the second-largest shareholder, previously holding a 21.87% stake (7,472,161 shares) in Lotte Global Logistics. The remaining put option volume of approximately 1.4 million shares is expected to be acquired by Hotel Lotte for around 72 billion KRW.
H PE entered into a put option agreement in 2017 when it invested in Lotte Global Logistics, allowing it to sell its shares back in the event of a failed IPO or similar circumstances. With the IPO of Lotte Global Logistics now effectively postponed indefinitely, H PE has decided to exercise the put option.
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