Lucky Core Industries (Previously ICI Pakistan) acquired Lotte Chemical Pakistan for Rs31.29 per share, totaling Rs 35.5 billion.
Faisal Abid, Company Secretary at Lotte Chemical Pakistan, informed the Pakistan Stock Exchange that the board of directors at Lotte Chemical Corporation (LCC) South Korea, the majority (75.01%) shareholder of Lotte Chemical Pakistan, authorized the sale of all LCC Korea shares (over 1.13 billion shares) (PSX).
“The consummation of the proposed divestment will be subject to the procurement of all applicable regulatory and corporate approvals as required. Further, the SPA is expected to be executed on January 26, 2023; however, it may vary depending on the progress. However, investors seem concerned about the completion of the transaction, given the dollar crunch in the local market,” said the notification.
The notification also stated that the divestment would be subject to regulatory and company approvals.
Lucky Core Industries announced the development separately at PSX.
The mailings did not reveal the transaction value. However, Bloomberg reported a 192.4 billion Won deal (South Korean currency).
Arif Habib Limited estimated the sale price as Rs31.29 per share, or Rs35.5 billion.
Sherman Securities estimated Rs30.5 per share. The parent business reported that the overall transaction value is KRW 192.4 billion (roughly Rs34.6 billion or $152 million), which is subject to the final settlement amount and may alter depending on cash flow at the time of closing.
The mailings did not reveal the transaction value. However, Bloomberg reported a 192.4 billion Won deal (South Korean currency).
Arif Habib Limited estimated the sale price as Rs31.29 per share, or Rs35.5 billion.
Sherman Securities estimated Rs30.5 per share. The parent business reported that the overall transaction value is KRW 192.4 billion (roughly Rs34.6 billion or $152 million), which is subject to the final settlement amount and may alter depending on cash flow at the time of closing.
Depending on progress, the SPA is projected to be executed on January 26, 2023. “However, investors seem cautious about the deal given the currency crunch in the local market,” the announcement said.
Lotte Chemical announced in June 2022 that its parent company would sell Pakistani holdings. It reported the stock returned 30% since then.
Novatex, Asiapak, and Lucky Core Industries expressed interest in buying a majority stake after the June announcement.
 acquired Lotte Chemical Pakistan for Rs31.29 per share, totaling Rs 35.5 billion.){kind=link}