share_log

Lotte Chemical Could Dispose Stake In US Unit For RM1.9 Billion

Business Today ·  Oct 24, 2024 22:12

Lotte Chemical Titan Holdings announce that its US unit Lotte Chemical Louisiana LLC a wholly owned subsidiary of Lotte Chemical USA Corporation an associate company of the local unit intends to undertake a corporate restructuring involving a capital contribution in LCLA by two Special Purpose Corporations (managed by a securities company) via a Price Return Swap contract.

It added that the two SPCs have expressed interest to acquire a total of 40% of LC USA's equity interest, each holding a 20% stake in LCLA, via a capital contribution of USD477 million. The proceeds Lotte Chemical Titan Holdings said is to be used to repay LC USA's loan and as operating expenses of LCLA.

This will result in LC USA's equity interest in LCLA to reduce from 100% to 60% and consequently, LCTH's effective interest in LCLA to reduce from 40% to 24%.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment