LOTTE GROUP-REFORMS Lotte chairman apologizes for family feud and vows to simplify structure
Record ID:
144317
LOTTE GROUP-REFORMS Lotte chairman apologizes for family feud and vows to simplify structure
- Title: LOTTE GROUP-REFORMS Lotte chairman apologizes for family feud and vows to simplify structure
- Date: 11th August 2015
- Summary: SEOUL, SOUTH KOREA (AUGUST 11, 2015) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** LOTTE GROUP CHAIRMAN SHIN DONG-BIN ENTERING NEWS CONFERENCE ROOM AND BOWING JOURNALISTS SEATED NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Korean) LOTTE GROUP CHAIRMAN SHIN DONG-BIN SAYING: "I sincerely apologise for any worries caused by the recent shameful situation." SHIN AND JOURNALISTS AT NEWS CONFERENCE (SOUNDBITE) (Korean) LOTTE GROUP CHAIRMAN SHIN DONG-BIN SAYING: "We will emerge as a new Lotte through reform." JOURNALISTS TYPING SHIN BOWING SHIN LEAVING
- Embargoed: 26th August 2015 13:00
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- Topics: General
- Reuters ID: LVABFX29F7WHX2M3CN4FN86UCOKZ
- Aspect Ratio: 16:9
- Story Text: Lotte Group Chairman Shin Dong-bin apologised on Tuesday (August 11) for the recent family feud over leadership succession.
Lotte Group's opacity made headlines after Shin and his brother Shin Dong-joo clashed in a bid to succeed their father, 92-year-old company founder Shin Kyuk-ho.
"I sincerely apologise for any worries caused by the recent shameful situation," Shin told a news conference.
Shin also said the group plans to simplify its ownership structure in an up to $6 billion dollar revamp which includes establishing a holding company.
Shin told reporters Lotte will reduce at least 80 percent of its cross-shareholding links by year-end and eventually eliminate them.
It will also list Hotel Lotte, a business key to Lotte Group's control of its South Korean affiliates, as quickly as possible, he added.
"We will emerge as a new Lotte through reform," Shin added.
It is not clear how long the restructuring will take but Shin Dong-bin said the total cost of adopting a holding company structure could be rise to around 7 trillion won ($5.97 billion), equivalent to two to three years' worth of net profit for the entire conglomerate.
Politicians and activists have criticised Lotte for its opaque holding structure, which ultimate leads back to various unlisted Japanese firms that have no obligation to disclose their shareholders. - Copyright Holder: REUTERS
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