Lotte Chemical Corporation completed the acquisition of 31.1% stake in Samsung Fine Chemicals Co. Ltd. from Samsung SDI Co. Ltd.(KOSE:A006400), Samsung Electronics Co. Ltd., Samsung Electro-Mechanics Co. Ltd., Hotel Shilla Co.,Ltd. and Samsung C&T Corp..
February 29, 2016
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Lotte Chemical Corporation (KOSE:A011170) agreed to acquire 31.1% stake in Samsung Fine Chemicals Co. Ltd. (KOSE:A004000) from Samsung SDI Co. Ltd.(KOSE:A006400), Samsung Electronics Co. Ltd. (KOSE:A005930), Samsung Electro-Mechanics Co. Ltd. (KOSE:A009150), Hotel Shilla Co.,Ltd. (KOSE:A008770) and Samsung C&T Corp. (KOSE:A028260) for approximately KRW 470 billion on October 29, 2015. Lotte Chemical will acquire 14.65% stake in Samsung Fine Chemicals from Samsung SDI for KRW 219 billion. In a related deal, Lotte Chemical will acquire 90% stake in chemical division from Samsung SDI for KRW 2.59 trillion. Samsung Electro-Mechanics Co. Ltd. (KOSE:A009150) will sell 0.06 million shares for KRW 3.87 billion. Hotel Shilla Co., Ltd will sell 0.57 million shares at KRW 33.43 billion. SAMSUNG Samsung C&T Corp. (KOSE:A028260) will sell 1.4 million shares at KRW 83.49 billion. The deal is subject to shareholder approval and regulatory approvals. Lotte Chemical will hold a board meeting on October 30, 2015 and vote on acquisition. The transaction is expected to complete on February 29, 2016. The proceeds from sale will be utilized to expand the production line of electric-car batteries and to strengthen research and development in battery materials. Bae Kim & Lee acted as a legal advisor to Lotte Chemical Corporation and Lee & Ko acted as a legal advisor to Hotel Shilla Co.,Ltd., Samsung C&T Corp., Samsung Electro-Mechanics Co. Ltd., Samsung Electronics Co. Ltd., Samsung Fine Chemicals Co. Ltd. and Samsung SDI Co. Ltd. Ernst & Young, Korea acted as financial advisor for Samsung SDI.
Lotte Chemical Corporation (KOSE:A011170) completed the acquisition of 31.1% stake in Samsung Fine Chemicals Co. Ltd. (KOSE:A004000) from Samsung SDI Co. Ltd.(KOSE:A006400), Samsung Electronics Co. Ltd. (KOSE:A005930), Samsung Electro-Mechanics Co. Ltd. (KOSE:A009150), Hotel Shilla Co.,Ltd. (KOSE:A008770) and Samsung C&T Corp. (KOSE:A028260) on February 29, 2016. Samsung Fine Chemicals will be renamed as Lotte Fine Chemicals Co.
Samsung C&T Corp is a Korea-based company principally engaged in the trading of industrial goods. The Company operates its business through six segments. The Trading segment is mainly engaged in the trading of chemicals, steel, natural materials, and living materials, among others. The Construction segment constructs office buildings, roads and railways, gas-fired power plants, coal-fired power plants, nuclear power plants, and houses, among others. The Food and Food Distribution segment is engaged in the provision of food services and the distribution of food materials. The Fashion segment mainly processes and sells clothing and accessories. The Resort segment is mainly engaged in the operation of theme parks, golf courses and others, and the landscaping. The Bio segment mainly produces biopharmaceuticals.
Lotte Chemical Corporation completed the acquisition of 31.1% stake in Samsung Fine Chemicals Co. Ltd. from Samsung SDI Co. Ltd.(KOSE: A006400), Samsung Electronics Co. Ltd., Samsung Electro-Mechanics Co. Ltd., Hotel Shilla Co.,Ltd. and Samsung C&T Corp..