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| 롯데케미칼 대산공장 (사진=롯데케미칼) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Lotte Chemical is reported to have begun reviewing the sale of Lotte Chemical Titan (LC Titan), a Malaysian subsidiary.
According to the industry on the 7th, Lotte Chemical is seeking domestic and foreign petrochemical companies and large private equity funds (PEF) to acquire LC Titan. Lotte Chemical is expected to sell its entire stake in LC Titan (74.7%) traded on the Malaysian Stock Exchange.
In the investment banking (IB) industry, Lotte Chemical has contacted several IBs since last year and has been working on selecting advisors for the sale. The problem is that the stock price of LC Titan, listed on the Malaysian stock market, has dropped significantly compared to the time of its listing and is suffering losses, so it will not be easy to find an original buyer.
LC Titan was launched in 2010 when Lotte Chemical acquired Titan Chemical, Malaysia's largest petrochemical company. LC Titan was listed on the local stock market in 2017 with a market capitalization of about 4 trillion won. It recorded a deficit from the second quarter of 2022 and posted an annual operating loss of 61.2 billion won last year. As of this day, the market capitalization of LC Titan is 746.5 billion won, about half of the acquisition price of about 1.5 trillion won.
Lotte Chemical said, "We are considering various measures to upgrade our portfolio, but nothing has been decided regarding the sale of LC Titan."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
