File footage of Lotte Group in South Korea

Record ID: 103008

  • Title: File footage of Lotte Group in South Korea
  • Date: 18th May 2016
  • Summary: SEOUL, SOUTH KOREA (MAY 18, 2016) (REUTERS) EXTERIOR OF HOTEL LOTTE SIGN READING (English): "LOTTE HOTEL" ENTRANCE TO HOTEL LOTTE SIGN READING (English and Korean): "LOTTE HOTEL SEOUL"
  • Embargoed: 2nd June 2016 10:50
  • Keywords: Lotte Group South Korea Lotte share sale
  • Location: SEOUL, SOUTH KOREA
  • City: SEOUL, SOUTH KOREA
  • Country: South Korea
  • Topics: Economic Events
  • Reuters ID: LVA0014IC3EKT
  • Aspect Ratio: 16:9
  • Story Text: South Korea's Hotel Lotte Co Ltd planned a share sale worth up to 5.7 trillion won ($4.85 billion) next month, sources said on Wednesday (May 18), in what would be the world's biggest initial public offering since late 2015.
    The sprawling Lotte Group said last year it would list Hotel Lotte, which includes the third-largest global duty-free retail chain, as part of efforts to simplify its ownership structure amid a family feud over leadership succession.
    The listing would headline what could be a bumper year for South Korean IPOs, fuelled by a rise in the share market and as conglomerates that dominate Asia's fourth-largest economy restructure.
    Hotel Lotte plans to use its IPO proceeds to expand its global business, including hotels, with acquisitions a possibility, a group spokesman said, declining to give details or to confirm the listing details. Last year, Hotel Lotte paid $805 million for the New York Palace hotel.
    Preliminary plans call for shareholders to sell about 13.65 million shares, or a 10 percent post-listing stake, while 34.2 million new shares, a 25 percent stake, would be issued at an indicative price range of 97,000 won to 120,000 won per share, the sources said.
    The IPO comes amid a family feud over who controls the Lotte Group, South Korea's fifth-largest conglomerate.
    Shin Dong-bin, the youngest son of 93-year-old founder Shin Kyuk-ho and CEO of the companies that are Hotel Lotte's main shareholders, cemented control of the group in August with the support of shareholders in a key Japan-based holding company. Older brother Shin Dong-joo is engaged in legal proceedings seeking to wrest control.
    The feud prompted criticism of Lotte's shareholding structure, triggering a reorganisation including the Hotel Lotte IPO.
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