LOTTE Corporation sold 5% of its treasury stock, worth 145 billion won, to LOTTE Engineering & Construction to enhance its financial soundness.
LOTTE Corporation announced it sold 5% of its treasury stock, totaling 5,245,000 shares, to LOTTE Engineering & Construction after the market closed on the 26th.
Earlier, LOTTE Corporation noted in its business report submitted in March that it was considering selling about 15% of its total issued shares as treasury stock for the purpose of improving its financial structure and investing in new businesses.
LOTTE Corporation explained that it decided to sell shares to major shareholders and related parties to minimize negative impacts on the market.
The proportion of treasury shares held by LOTTE Corporation decreased from 32.5% to 27.5%.
LOTTE Corporation, which launched as a general holding company in 2017, explained that its treasury stock proportion increased through partitioning and mergers with affiliates like LOTTE Confectionery, Lotte Shopping, LOTTE Chilsung Beverage, and LOTTE Food.
LOTTE Corporation is also considering gradually selling 15% of its treasury stock, including transaction volume, and additionally some share buybacks.
If the buyback plan materializes, it will be presented as an agenda item at the shareholders' meeting and implemented through a special resolution.
A LOTTE Corporation official explained, "We expect that as financial soundness improves and business capabilities strengthen, it will ultimately enhance shareholder value," adding, "We plan to faithfully implement our shareholder return policy, aiming for a return rate of over 35%, by simultaneously providing cash dividends and conducting share buybacks."
LOTTE Corporation stated that the equity ratio of voting rights by related parties exceeds 60%, establishing a stable governance structure unrelated to treasury shares.