Lotte Chemical said on August 22 in a regulatory filing that its management had agreed to merge with Lotte Advanced Materials, a wholly-owned subsidiary.
The board of directors of Lotte Chemical, based in Seoul, agreed on a scheduled merger between two Korean-Japanese Lotte subsidiaries. Lotte Advanced Materials will merge into Lotte Chemical once the merger takes place.
Following a shareholder meeting in November, the merger is anticipated to be complete by January 2020.
Lotte Chemical’s dissenting shareholders may submit veto privileges in September. The merger will be scrapped if a combined stake of more than 20 percent is represented by opposing stakeholders. The majority shareholders of Lotte Chemical include 23.24 percent of Lotte Corp., 20 percent of Lotte Property & Development and 9.3 percent of Lotte Holdings. The rest of Lotte Chemicals’ 42.59 percent is owned by minority shareholders.
The disclosure came weeks after Samsung SDI bought the remaining 10 percent stake for 279.5 billion won ($231 million) from Lotte Chemical, which already held a 90 percent stake in Lotte Ad-vanced Materials.
Formerly a chemical material making operation of Samsung SDI, Lotte Advanced Materials got its new name after a Samsung SDI split-off and Lotte’s acquisition for 2.3 trillion in 2016. Lotte Advanced Chemicals is based in the coastal city of Yeosu, South Jeolla Province. Both Lotte Chemical and Lotte Advanced Materials have presence in plastic polymer market. Lotte Chemical produces polyethylene and polypropylene, while Lotte Advanced Materials makes acrylonitrile butadiene styrene and polycarbonate.
