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Photo = Lotte Chemical |
[Alpha Biz= Kim Jisun] Lotte Chemical’s sale of its Pakistan subsidiary is gaining momentum, as local investment firms have submitted letters of intent (LOI), indicating that the sale process is nearing its final stage.
According to industry sources on Sunday, Pakistan-based investment firm AsiaPak Investments and UAE petrochemical company Montage Oil DMCC submitted LOIs to acquire Lotte Chemical Pakistan Limited (LCPL), which is listed on the Pakistan Stock Exchange, on the 13th.
LCPL, 75.01% owned by Lotte Chemical, operates a non-core business producing purified terephthalic acid (PTA). Lotte Chemical is pursuing restructuring efforts, including the sale of non-core subsidiaries, to strengthen its financial stability and shift its business portfolio.
While the specific acquisition amount has not been disclosed, industry estimates suggest the deal is likely to be valued at around 100 billion KRW (approximately $75 million).
LCPL was acquired by Lotte Chemical in 2009 for approximately 14.7 billion KRW. The company has an annual production capacity of 500,000 tons of PTA, which is used in polyester fibers, industrial yarns, and PET bottles.
In January 2023, Lotte Chemical had signed a sales agreement with Pakistan’s Lucky Core Industries, valued at approximately 192.4 billion KRW, but the deal fell through in January last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
