LOTTE Group's logistics company LOTTE Global Logistics has decided to withdraw its listing on the KOSPI market, and LOTTE Corporation will transfer 1.26 billion won worth of put option quantities to Korea Investment & Securities and Samsung Securities.
According to the Financial Supervisory Service's electronic disclosure system (Dart) on the 3rd, LOTTE Corporation announced on the 2nd that it would dispose of 6,044,952 shares of common stock of LOTTE Global Logistics that it had originally planned to acquire to Korea Investment & Securities and Samsung Securities.
Following the shareholder agreement, the method for transferring the buyer position of the shares will involve Korea Investment & Securities acquiring 4,798,925 shares and Samsung Securities acquiring 1,246,027 shares. The transaction amount is 125.9647 billion won, or 20,838 won per share. The scheduled acquisition date is June 11.
Through this transaction, LOTTE Corporation will be able to alleviate the burden of put options that it assumed due to the withdrawal of LOTTE Global Logistics's listing. The remaining put option burden on LOTTE Corporation has been reduced to 181.4 billion won.
Meanwhile, LOTTE Corporation will also sign a stock price return swap (PRS) contract with the acquirers (Korea Investment & Securities and Samsung Securities) for a maximum of three years. Under this contract, if the acquirers sell LOTTE Global Logistics shares, the difference between the actual sale amount and the base amount will be settled.
Acquirers can receive compensation for losses from LOTTE Corporation even if the stock price falls. Conversely, if the stock price rises, the acquirers must return the profit to LOTTE Corporation.
Earlier, LLH invested 286 billion won in LOTTE Global Logistics in 2017, and if the initial public offering (IPO) occurred at a price lower than the acquisition price per share, LOTTE Group signed a put option agreement to cover the difference.
LOTTE Global Logistics has been preparing for its KOSPI listing since March, but after failing to meet the expected public offering price range during the demand forecast for investors, it withdrew the listing plan on the 2nd of last month. At that time, the desired public offering price range for LOTTE Global Logistics was between 11,500 and 13,500 won.