Lotte Confectionery Co. Ltd. signed a contract to acquire 76.2% stake Rakhat JSC from Bd Associates (Uk) Ltd, Natalya Hilchuk, Anatoliy Popelushko, Sweet City, the Chief Executive and family for approximately $120 million.
July 01, 2013 at 09:30 am IST
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Lotte Confectionery Co. Ltd. (KOSE:A004990) signed a contract to acquire 76.2% stake Rakhat JSC (KAS:RAHT) from Bd Associates (Uk) Ltd, Natalya Hilchuk, Anatoliy Popelushko, Sweet City, the Chief Executive and family for approximately $120 million in cash on July 1, 2013. Under the terms of agreement, Lotte Confectionery will pay $43.5 per share. Post closing, Lotte Confectionery intends to issue a mandatory tender offer to acquire the remaining 23.8% shares in Rakhat JSC (KAS:RAHT) at such time and on terms mandated by Kazakhstan law.
The transaction is subject to approval from Kazakh authorities and is expected to complete by the end of 2013. Kazakh authorities are likely to approve the transaction in October 2013. The Board of Directors of Lotte Confectionery passed a resolution for transaction on July 2, 2013.
HSBC Holdings plc (LSE:HSBA) acted as financial advisor and Morgan, Lewis & Bockius LLP acted as legal advisor for BD Associates. PricewaterhouseCoopers Korea acted as accountant, Kim & Chang and Salans LLP acted as legal advisors for Lotte Confectionery.
Rakhat AO (Rakhat JSC) is a Kazakhstan-based company engaged in the production and distribution of confectionery products. The Companyâs product portfolio consists of chocolate and non-chocolate products, such as caramel, candies, sweets, waffles, biscuits, fruit jellies, cookies, marshmallows, as well as semi-products, including cocoa-powder and cocoa butter. The Company offers also sugar-free products, such as waffles, sweets, biscuits, and chocolate. Rakhat AO operates through such subsidiaries as: Rakhat-Shymkent TOO, Rakhat-TR TOO and Rakhat-Aktobe TOO, among others. The Companyâs major shareholder is Lotte Confectionery Co Ltd with a stake of 76%.
Lotte Confectionery Co. Ltd. signed a contract to acquire 76.2% stake Rakhat JSC from Bd Associates (Uk) Ltd, Natalya Hilchuk, Anatoliy Popelushko, Sweet City, the Chief Executive and family for approximately $120 million.
RAKHAT 
