Lotte Shopping Co., Ltd. (KOSE:A023530) agreed to acquire remaining 20.99% stake in Lotte Midopa Co. Ltd. (KOSE:A004010) for approximately KRW 170 billion in stock on October 18, 2012. On October 22, 2012, Lotte Shopping signed an agreement to acquire Lotte Midopa. Lotte Shopping Co., shares will issue 0.0375684 shares for every share of Lotte Midopa Co. Lotte Shopping will pay the value of the fractional shares in cash based on the closing price. The transaction is also subject to approval by Lotte Shopping's shareholders and if not less than 20% of Lotte Shopping's shareholders give written notice opposing the merger within two weeks of the merger notice, Lotte Shopping may not proceed with the merger as a small scale merger and approvals from the applicable regulators and the merger process. The transaction has been approved by Board of Directors of Lotte Shopping Co. The date of merger notice for small scale merger and the rights of shareholders who oppose the small scale merger will be determined on November 3, 2012 and Board of Directors' meeting in lieu of shareholders' meeting to approve the merger will take place on November 28, 2012. As of November 28, 2012, Lotte Shopping Board of Directors' meeting in lieu of shareholders' meeting approved the merger. The merger is expected to take place on January 1, 2013 and expected merger registration date is January 3, 2013.

Lotte Shopping Co., Ltd. (KOSE:A023530) completed the acquisition of remaining 20.99% stake in Lotte Midopa Co. Ltd. (KOSE:A004010) on January 1, 2013.