Lotte Chemical said in an administrative documenting on Aug. 22 that its administration had consented to converge with completely possessed auxiliary Lotte Advanced Materials.
Seoul-based Lotte Chemical’s governing body conceded to an arranged market augmentation merger between two backups of the Korean-Japanese Lotte combination. When the merger happens, Lotte Advanced Materials will be converted into Lotte Chemical.
The merger is relied upon to be finished by January 2020, after an investors’ gathering in November.
Disagreeing investors of Lotte Chemical may present veto rights during Sept. 6-20. The merger will be rejected if restricting partners represent a joined stake of more than 20 percent.
Lotte Chemical’s significant investors incorporate Lotte Corp. with 23.24 percent, Lotte Property and Development with 20 percent and Lotte Holdings with 9.3 percent. Minor investors claim 42.59 percent of Lotte Chemical.
The divulgence came a long time after Lotte Chemical, which effectively held a 90 percent stake in Lotte Advanced Materials, purchased the staying 10 percent stake from Samsung SDI for 279.5 billion won ($231 million).
Previously a compound material making activity of Samsung SDI, Lotte Advanced Materials got its new name after a split-off from Samsung SDI and 2.3 trillion won obtaining by Lotte in 2016.
Lotte Advanced Chemicals is situated in the beach front city of Yeosu, South Jeolla Province.
Both Lotte Chemical and Lotte Advanced Materials have nearness in plastic polymer advertise. Lotte Chemical produces polyethylene and polypropylene, while Lotte Advanced Materials makes acrylonitrile butadiene styrene and polycarbonate.